Wednesday, October 2nd 2013
OCZ Announces Settlement of Consolidated Shareholder Class Action Litigation
OCZ Technology Group, Inc., a leading provider of high-performance solid-state drives (SSDs) and power management solutions for computing devices and systems, today announced that it has reached a settlement in principle in the federal shareholder class action litigation filed in connection with the Company's financial restatement.
The settlement is subject to negotiation of final documentation and court approval. Subject to Court approval, the settlement of $7.5 million will be funded by the Company's D&O liability insurance. The settlement may include an additional payment of the lesser of $6M or 4% of the net proceeds in the event that the company or any portion of it is sold within six months of the executed settlement agreement. This settlement would resolve the consolidated shareholder class actions pending in connection with the restatement.
"We are pleased to have reached a settlement in principle in regards to the shareholder class action litigation, and we believe this is a positive step for the Company," said Ralph Schmitt, CEO of OCZ Technology. "The team is highly focused on completing the financial restatement process shortly and becoming current with our filings."
The settlement is subject to negotiation of final documentation and court approval. Subject to Court approval, the settlement of $7.5 million will be funded by the Company's D&O liability insurance. The settlement may include an additional payment of the lesser of $6M or 4% of the net proceeds in the event that the company or any portion of it is sold within six months of the executed settlement agreement. This settlement would resolve the consolidated shareholder class actions pending in connection with the restatement.
"We are pleased to have reached a settlement in principle in regards to the shareholder class action litigation, and we believe this is a positive step for the Company," said Ralph Schmitt, CEO of OCZ Technology. "The team is highly focused on completing the financial restatement process shortly and becoming current with our filings."
1 Comment on OCZ Announces Settlement of Consolidated Shareholder Class Action Litigation
This story is pretty much ZZZZzzzzzz. I had wondered if this company was still up for sale and I really can't see it in the next 12 months at least not with the stock hovering where it is now. I know the big bucks are in enterprise and know nothing about that... but on the consumer side I think Vector and Vertex 4 are just as reliable as anything out there. It is just too bad things got clouded with crap like Petrol and Agility 4.