Macromedia has agreed an out-of-court settlement of a class-action suit alleging stock-price fixing that's been pending since 1997.
The settlement was made "without presumption or admission of liability or wrongdoing", Macromedia said.
The company added: "Macromedia has signed a memorandum of understanding with lead plaintiffs that tentatively resolves securities class-action litigation that had been pending in state and federal court in California against the company and certain of its former officers and directors."
In its recently filed quarterly report, Macromedia reveals that the complaint (called Rosen versus Macromedia) alleged that Macromedia and five former officers of the company engaged in securities fraud.
It was alleged the company tried to "inflate the value of Macromedia stock by issuing statements that were allegedly false or misleading (or omitted material facts necessary to make any statements made not false or misleading) regarding Macromedia's financial results and prospects". (Item 1: Legal Proceedings).
Four other similar complaints were filed. For the purpose of the settlement, all five were consolidated into one. The plaintiffs were seeking unspecified damages.
Macromedia said it will take a non-operating, pre-tax charge of about $28 million in the fiscal second quarter ending September 30 as a result of the settlement. As of June 30, Macromedia had cash, equivalents and short-term investments totalling $154 million.