DETECTION SYSTEMS SETTLES LITIGATION ARISING FROM 1998 SHAREHOLDER CLASS-ACTION SUIT
FAIRPORT, N.Y.
Detection Systems Inc. has announced that it has reached an agreement in principle to settle the shareholder class-action lawsuit that has been pending since February 1998. The settlement, the details of which were not fully disclosed, is subject to certain conditions, including court approval. The company to record a one-time charge of $1.6 million, or approximately 15 cents per share, in the fourth quarter ending March 31, 2000, for costs not covered by insurance.
“As we have stated repeatedly in our filings with the Securities and Exchange Commission (SEC), we believe the allegations have no merit, and were prepared to continue to defend the lawsuit vigorously,” says Karl H. Kostusiak, chairman and CEO. “We have concluded, however, that it is in the best interests of the company’s shareholders to settle the case at this time.” Detection Systems is a global provider of electronic protection equipment.
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