Critical Path to Pay $17.5 Million to Settle Suits

Critical Path(CPTH Quote) will pay $17.5 million and issue warrants on 850,000 shares to settle shareholder litigation.

The San Francisco messaging-software maker said the agreement will result in the dismissal of the pending suits, the specifics of which it didn't disclose. The final settlement is still subject to negotiation and execution of final documents.

Critical Path said the amount of the settlement will be covered by its liability insurance.