Excerpt: "MicroStrategy Inc. said yesterday that it settled a class-action lawsuit filed by
shareholders who alleged that the software company defrauded investors by
overstating years of revenue and earnings. The financially troubled Vienna firm
agreed to pay shareholders $80.5 million in five years, plus interest payments of
about $3 million every six months in the meantime. The settlement also includes
stock valued at a minimum of $16.5 million and warrants to purchase 1.9 million
additional shares from the company at a price of $50 a share--more than double
their current level...
In March, before MicroStrategy disclosed its accounting problems, the stock
was trading at $226.75. It closed yesterday at $24.75. The stock-market value of
the company is now about $2 billion, down from $17.9 billion before the March
accounting correction...
The investors who stand to benefit from the settlement include those who bought
Microstrategy stock between June 11, 1998 the date of its initial public offering,
and March 20, when Microstrategy announced it was restating its results...
The settlements are subject to court approval..."