BigBand Networks has agreed to pay $1.5 million to settle a consolidated class-action shareholder lawsuit alleging the video-equipment maker misrepresented its financial outlook, according to a regulatory filing by the company Wednesday.
The agreement, reached Tuesday, gives BigBand a full release for all potential claims arising from the securities laws alleged in the initial and consolidated complaints, including claims for alleged violations of the Securities Act of 1933 and the Exchange Act of 1934, the company said.
In September 2007, BigBand warned that its third-quarter revenues would be as much as 40% lower than previous expectations. That prompted several shareholder lawsuits, which were later consolidated, alleging BigBand violated federal securities laws by issuing misrepresentations about its operations and prospects to inflate the stock price.
As a result of the settlement, BigBand said it would incur a $1.5 million charge for litigation and related expenses to its results of operations for the three months ended Dec. 31, 2008.
BigBand declined to comment beyond the information contained in the 8-K filing.
