Network Computing Devices to Settle Suits

Network Computing Devices Inc. said it will pay $1.1 million and its insurers $11 million to settle five pending securities class-action lawsuits. The Mountain View-based maker of specialized terminals for computer networks said the payment will reduce fourth-quarter earnings by about 2 cents a share. The settlement must be approved by a federal judge. The suits were filed last spring after the company said it would restate its 1995 fourth-quarter earnings to show a loss instead of a profit. That sent the stock price down 26%. It closed down 25 cents at $10 in Nasdaq trading. Under terms of the agreement, Network Computing insurers will pay $11 million into a settlement fund to be distributed among shareholders who bought the stock between March 22, 1995, and July 3, 1996. The company agreed to pay $1.1 million to cover its own outside legal expenses, he said.