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UNİTEK GLOBAL SERVİCES Message Board

  • zescrowman zescrowman Nov 13, 2013 11:36 AM Flag

    Did they give a 'guesstimate' on the

    amount of $ they are agreeing to pay to settle the shareholder class action lawsuit?

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    • Zescow,

      No, they did better than that... They settled for almost nothing and were covered by insurance . From the 10Q:

      As previously disclosed, a consolidated class action lawsuit was filed against the Company and certain of its current and former officers in the United States District Court for the Eastern District of Pennsylvania. The case, entitled In Re UniTek Global Services, Inc. Securities Litigation, Civil Action NO. 13-2119, alleges that the Company made misstatements and omissions regarding its business, its financial condition and its internal controls and systems in violation of the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In October 2013, the plaintiffs and the Company reached a preliminary agreement to settle all claims for an amount of $1.6 million , including attorneys’ fees and expenses.
      This preliminary settlement is subject to the approval of the court, and the parties intend to submit settlement documents to the court by mid-December. The Company believes that the settlement amount will be covered by insurance and has accrued the $0.3 million deductible.

      I was surprised that this did not get better coverage than it did as it is huge news. I intend to check the Pacer records to see if there is some detail that makes this less newsworthy than it appears.

      On the surface, however, it looks like exactly what I predicted it would be: A tempest in a teacup.

      Considering how much this tore down the per share price, the settlement is just plain silly.

      Best,

      pajacobsen