Sunday, June 1, 2008

Brocade Settles Federal Securities Class-Action Suit for $160 Million

Brocade Communications reached an agreement in principle with lead plaintiffs to settle the federal securities class-action lawsuit originally filed in May 2005 in relation to the company's restatement of certain financial results in 2005 due to stock-based compensation accounting issues.

Under the terms of the preliminary settlement, Brocade will pay $160 million to the plaintiff class in exchange for the dismissal with prejudice of all claims against all defendants in the litigation. The settlement is subject to final documentation and approval by the federal district court.