|
 |
| 2003
News and Press Releases |
|
|
SETTLEMENT ARCHIVED:
EXTREME NETWORKS ACCEPTS LAWSUIT SETTLEMENT PROPOSAL
By: Tom Becker
Dow Jones News Service, November 10, 2003
_________________________________________________________________________
EXCERPT: Extreme Networks Inc. (EXTR) has agreed to a proposed settlement of a securities fraud class-action lawsuit concerning the company's initial public offering. Plaintiffs in the class-action lawsuit will soon vote to decide whether to proceed with the settlement. If they vote in favor of the deal, it must then be approved by the U.S. District Court in Manhattan before it can go into effect, according to a document filed with the Securities and Exchange Commission Monday. Under the terms of the deal, the plaintiffs will dismiss and release all claims against Extreme in exchange for a payment by the companies that insured Extreme's IPO in April 1999, according to the SEC filing. Extreme also agreed to surrender the control of certain claims it may have against the underwriters of its IPO, including Morgan Stanley & Co. (MWD), BancBoston Robertson Stephens Inc. and Lehman Brothers Inc. (LEH) - all of which were named as defendants in the lawsuit. Extreme won't have to make a cash payment to the plaintiffs unless the amount paid by the insurers in the settlement exceeds the amount of the insurance coverage, according to the filing. The amount to be paid to the plaintiffs by the insurance companies wasn't disclosed. Several law firms representing the plaintiffs didn't return calls seeking comment. A spokeswoman with Extreme said the company doesn't comment on ongoing litigation. "If the settlement is not approved, we cannot assure you that we will prevail in the lawsuit," Extreme said in the document. "Failure to prevail could have a material adverse effect on our consolidated financial position, results of operations, and cash flows in the future." If approved, the settlement proposal would put to rest a class action lawsuit originally filed in July 2001.
|
|
|
