NICE Systems Settles Remaining Securities Litigation in U.S.
Multimedia recording solutions provider NICE Systems says
it has reached settlement agreements on two remaining
securities lawsuits in the United States filed as a result
of the company’s restatement of its financial results for
1999 and certain periods in 2000.
NICE has entered into an agreement to settle the securities class-action lawsuit filed against the company and certain of its former officers in the U.S. District Court for the district of New Jersey. Under the terms of the settlement, subject to court approval, all claims against the company and all other defendants will be dismissed without admission of liability or wrongdoing by any party. The $10 million settlement will be funded entirely by the company’s directors and officers liability insurance.
NICE says it has also settled a separate action filed against the company and its wholly-owned subsidiary by Douglas Chapiewsky in the district court, city and county of Denver. Chapiewsky was the sole shareholder of CenterPoint Solutions Inc., which was acquired by NICE in April 2000. Under the terms of this settlement, the company says all claims will be dismissed without admission of liability or wrongdoing by any party.
The settlement consists of $3 million plus 50,000 shares of NICE Systems’ ordinary shares, which have been in escrow since the second quarter of 2000, pursuant to an earn-out provision of the original acquisition agreement. The settlement will be paid during the current quarter, and NICE is pursuing reimbursement from its insurance company.
Commenting on these settlements, Haim Shani, CEO of NICE, says, “We believe it is in the best interests of the company and its shareholders to remove the uncertainty, expense and distraction of this litigation and we are pleased to have this behind us.”
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