New York, NY: (Jan-07-08) A class action lawsuit was filed against South Korean online game developer Gravity Co., Ltd. In a recent development, sources close to the case revealed that the company had agreed to resolve litigation by entering into a settlement agreement. Under the terms of the deal, officials stated that a US federal judge approved a $10 million fund that will be created to settle the claims of a class consisting of persons who purchased American Depository Shares of the company during the period from February 7, 2005 through November 10, 2005. Gravity spokespersons claimed that the company's share of the settlement fund will be $5 million.
The company has denied and continues to deny any and all allegations of wrongdoing in connection with this matter, but believes that given the uncertainties and costs associated with the litigation, the settlement was in the best interests of the Company and its shareholders. [
