|  | | 2006 News and Press Releases | | |
SETTLEMENT NEWS:
Settlement Approved As Fair, Reasonable And Adequate; In Re Tripath Technology Inc. Sec. Litig., No. 04-4681 (N.D. Cal. Apr. 18, 2006)
Staff Writer – (Judge: Saundra B. Armstrong)
Class Action Law Monitor. May 31, 2006
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EXCERPT: The U.S. District Court for the Northern District of California approved a stipulation and agreement of settlement between a company and its shareholders in a securities fraud class action, finding that the prerequisites for class certification were met, and the settlement was fair, adequate and reasonable. A proposed class of shareholders of Tripath Technology Inc. sued Tripath, its officers and its directors for securities fraud. Tripath and the shareholders entered into a settlement agreement wherein the settlement fund would make 2.45 million Tripath shares available to the class and $200,000 cash to pay for costs of notice and administration. Additionally, the settlement provided that plaintiffs' counsel would receive 25%, or 612,500 settlement shares, and $19,128.08 for expenses and costs. In exchange for the settlement shares and expense costs, the shareholders released Tripath from future claims. The parties notified all people who purchased Tripath securities of the fairness hearing for the settlement by publication in Investor's Business Daily and through mail. The parties moved the district court for approval of the settlement. …The district court certified a class of purchasers of Tripath securities for the purposes of the settlement and approved the settlement as fair, reasonable and adequate, finding that notice was sufficient and attorneys' fees were fair and reasonable. |
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