Printer Friendly

NEWBRIDGE NETWORKS ANNOUNCES SETTLEMENT OF CLASS ACTION LAWSUIT

 NEWBRIDGE NETWORKS ANNOUNCES SETTLEMENT OF CLASS ACTION LAWSUIT
 KANATA, Ontario, Dec. 17 /PRNewswire/ -- Newbridge Networks Corporation (NASDAQ: NNCXF) today announced that it has reached an agreement in principle to settle, as against all defendants, the consolidated class action lawsuit which was brought in the first quarter of the company's fiscal year ended April 30, 1991. The suit, which names the company and certain of its executive officers as defendants, purports to be a class action on behalf of a class of persons who purchased common shares of the company during certain periods in 1989 and 1990 and alleges that the company violated U.S. securities laws.
 The agreement in principle, which is subject to the execution of definitive settlement documents and to the approval of the United States District Court in Washington, D.C., calls for the establishment of a settlement fund from which members of the plaintiff class are to be paid. The fund will consist of US $1.5 million in cash and 600,000 freely tradeable common shares to be issued by the company following final approval of the settlement by the court. If the value of the common shares, determined by a formula based on trading on NASDAQ, is less than US$6.25 per share at the time the settlement is finally approved, the number of common shares issued will be increased so that the total value of the shares issued is US$3.75 million. Final approval of the settlement is not expected to be obtained for several months, during which time the cash portion of the settlement will earn interest at the daily interest rate paid by the Company's principal bankers on United States dollar deposits. The accrued interest will be paid to the plaintiffs as part of the settlement.
 The company believes that the settlement will not have any material adverse effect on its operations, as it has sufficient funds available to pay the cash amount of the settlement. The 600,000 common shares to be issued in the settlement will represent approximately 1.7 percent of the total number of common shares outstanding at the time they are issued.
 The settlement will be recorded by the company as a prior period adjustment to the last fiscal year, which ended April 30, 1991, and as such will have no effect on earnings for the current quarter or earnings previously reported for the first two quarters of the current fiscal year. This treatment complies with accounting principles generally accepted in Canada. Under accounting principles generally accepted in the United States, the settlement would be recorded as a charge to earnings in the current fiscal year's third quarter ending Feb. 1, 1992.
 The company and the individual defendants have expressly denied any liability under the securities laws alleged to have been violated. However, the company believes that settlement of the suit on these terms is advantageous in view of the risks, the substantial defense costs and the distraction of management focus inherent in continuing the litigation.
 Newbridge Networks is an international company which designs, manufactures, markets and services high performance, standards-based networking products for global LAN and WAN applications, all manageable by a single, graphically rich network management system. Facilities are located in Canada, the United States, Asia, Europe and the Soviet Union.
 Newbridge Networks Corporation is a public company whose common shares are listed for trading of the Toronto Stock Exchange (NNC) in Canada and quoted for trading on the NASDAQ National Market System (NNCXF) in the United States.
 -0- 12/17/91
 /CONTACT: Jim Marshall or Sandra Plumley, 613-591-3600, for Newbridge/
 (NNCXF) CO: Newbrige Networks Corporation ST: Ontario IN: CPR SU:


KD -- NY078 -- 3110 12/17/91 16:26 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 17, 1991
Words:618
Previous Article:FOREMOST CORPORATION OF AMERICA ANNOUNCES R.L. ANTONINI'S ELECTION AS CHAIRMAN OF THE BOARD
Next Article:DOMINION TEXTILE ANNOUNCES AMENDMENT TO ITS DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN
Topics:


Related Articles
COURT APPROVES $3.8 MILLION SETTLEMENT IN GENERIC DRUG CLASS ACTION SUIT
APPLE COMPUTER INC. ANNOUNCES AGREEMENT IN PRINCIPLE TO SETTLE TWO SECURITIES CLASS ACTION LAWSUITS
NEWBRIDGE ANNOUNCES THIRD QUARTER RESULTS
NEWBRIDGE ANNOUNCES THIRD QUARTER RESULTS
POUGHKEEPSIE SAVINGS BANK SETTLES CLASS ACTION LAWSUIT NO ADDITIONAL COST TO THE BANK
COURT GIVES FINAL APPROVAL TO SETTLEMENT OF CLASS ACTION LAWSUIT AGAINST NEWBRIDGE
COURT APPROVES L.A. GEAR SETTLEMENT AGREEMENTS WITH RESPECT TO THREE CONSOLIDATED SHAREHOLDER CLASS ACTION LAWSUITS
'BREAKTHROUGH' ASBESTOS CLASS ACTION LAWSUIT FILED; EXPECTED TO LEAD TO $3.5 BILLION SETTLEMENT WITH FIBREBOARD, INSURERS, COUNSEL SAYS
BFC FINANCIAL CORPORATION ANNOUNCES
NEWBRIDGE REPORTS LAWSUIT

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters