Sunnyvale, CA: (Mar-17-08) A shareholder class action lawsuit was brought against Harmonic Inc., alleging that the provider of broadcast and on-demand video delivery systems violated federal securities laws. The suit claimed that the violations were committed by Harmonic and some of its officers and directors, as per a filing with the US Securities and Exchange Commission. Sources close to the case revealed that the two sides had reached a settlement, resolving the lawsuit.
Under the terms of the settlement agreement, Harmonic agreed to pay $15 million and an additional $1.4 million for related legal fees and expenses, to end all litigation in the shareholder class action. Company sources said that the company will pay $6.4 million, while its insurance carriers will cover the remaining $10 million. The suit, slated for trial in August 2008, was settled without the admission of any wrongdoing. The company claimed that the move was solely to avoid the costs and distractions of litigation. Harmonic officials said that it will have to lower its fourth-quarter and full-year earnings and revenue results following the completion of its audit. [
