Seoul, Korea: (Apr-15-08) A consolidated shareholder class action lawsuit was brought against Pixelplus Co., Ltd., a Korean fabless semiconductor company that designs, develops, and markets CMOS image sensors for various consumer electronics applications. The suit named certain current and former directors and officers as defendants in the case filed in the United States District Court for the Southern District of New York in April 2006. In a recent announcement, company officials stated that it has reached a tentative settlement to resolve the consolidated shareholder class action.
As per the terms of the settlement agreement, the company refused to admit to the allegations, and maintained its stance that the accusations lacked merit. However, Pixelplus agreed to a compromise payment of $1 million. The settlement does not admit any wrongdoing by the company or the directors or officers, stating that it was a business decision to avoid further costs and distractions that accompany prolonged litigation. Company spokespersons also said that the compromise payment will not have a material impact on Pixelplus' financial position or results of operations. [
