Judge OKs $15-Million PeopleSoft Settlement
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PeopleSoft Inc. won a judge’s approval for a $15-million settlement of shareholder lawsuits accusing the No. 3 maker of business-management software of misleading investors about the company’s earnings.
U.S. District Judge William Alsup in San Francisco concluded that PeopleSoft’s agreement to pay $12.5 million in damages and $2.5 million in legal fees and expenses was a “fair, adequate and reasonable” end to the securities-fraud suits.
Nearly 20 PeopleSoft shareholders sued in federal court in San Francisco in 1999, accusing the Pleasanton, Calif.-based software maker of artificially inflating its stock price by issuing misleading earnings reports. Investors also alleged the company used irregular accounting methods to record charges connected to acquisitions.
PeopleSoft’s shares rose $1.95 to $37.15 on Nasdaq.
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