US based telco Leap Wireless has announced that it will pay US$13.8m to settle shareholder lawsuits, which relate to restatement of results in 2007.
Leap states that the lawsuits being settled relate to its 2007 restatement of certain financial reports…
US based telco Leap Wireless has announced that it will pay US$13.8m to settle shareholder lawsuits, which relate to restatement of results in 2007.
Leap states that the lawsuits being settled relate to its 2007 restatement of certain financial reports to correct for errors in previously reported service revenues, equipment revenues, and operating expenses. Leap adds that although it and the individual defendants have denied any liability or responsibility for the claims made and makes no admission of any wrongdoing, it believes that it is in the best interests of its stockholders to settle the matters.
A company statement said: “The settlement is contingent on court approval and provides for, among other things, dismissal of the lawsuits with prejudice, the granting of broad releases of the defendants, and a payment to the plaintiffs of $13.75 million, which would include payment of any attorneys’ fees for plaintiffs’ counsel. The Company anticipates that the entire settlement amount will be paid by its insurers. On February 18, 2010, the lead plaintiff filed a motion seeking preliminary approval by the court of the settlement and approval of a form of notice to potential settlement class members.”