Court Clears Symbol Settlement

The Long Island company will pay $98 million to settle a class-action suit.
Author:
Publish date:

Symbol Technologies (SBL) won court approval of an agreement to settle a shareholder lawsuit for $98 million in cash and stock.

The Holtsville, N.Y., bar code reader specialist said the U.S. District Court for the Eastern District of New York approved the settlement of the lawsuit, which was brought in June.

Symbol has replaced most of its top management and in June

settled a fraud investigation by the

Securities and Exchange Commision

for $37 million.

The government charged former executives including ex-CEO Tomo Razmilovic and former finance chief Ken Jaeggi with taking part in a massive accounting fraud that inflated reported earnings by hundreds of millions.

The SEC's complaint alleged that from at least 1998 until early 2003, Symbol and the former execs engaged in "numerous fraudulent accounting practices and other misconduct" that had a cumulative net impact of more than $230 million on Symbol's reported revenue.

Last year, two former executives, Bob Asti and Bob Korkuc, pleaded guilty to securities fraud charges.

Korkuc, the company's former chief accounting officer, admitted last year that he schemed with other top executives to inflate the company's earnings to meet Wall Street estimates.

Symbol had set aside $142 million to cover the costs of the settlements.

Shares rose 20 cents, or 1%, to $14.30 in postclose trading when Symbol announced the settlement Thursday.