Monday, January 17, 2005

Enterasys Settles Shareholder Suit Against Cabletron Systems

Enterasys Networks reached an agreement in principle to settle shareholder litigation filed in 1997 against its predecessor, Cabletron Systems, and certain Cabletron directors and officers. Under the deal, Enterasys has agreed to pay $10.5 million. The company expects all but approximately $500,000 of this amount to be recovered from proceeds of certain company insurance policies.

Enterasys said the settlement, which is subject to execution of a final settlement agreement and subsequent court approval, does not reflect any admission of wrongdoing by the defendants.

"We are very pleased to be putting this matter behind the company with minimal financial impact," said William K. O'Brien, chief executive officer of Enterasys Networks. "Our current management team inherited a significant number of legacy issues that needed to be dealt with. In settling the last pending shareholder lawsuit, we are closing a difficult chapter in the company's history."

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