Platinum Software Plans Issue of Shares to Settle 1994 Lawsuit
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IRVINE — Platinum Software Corp. said it plans to issue 1.53 million shares of the company’s stock to settle a 1994 class-action lawsuit that accused the company of violating federal securities laws.
The shares, to be issued within 30 days, will be used to redeem a $15-million debenture the company issued to the plaintiffs in the case. “I consider this chapter in the company’s history concerning the lawsuit to be closed,” said L. George Klaus, chief executive of Platinum.
The move marks the second time the company has prepared to issue stock to settle the claim. An earlier agreement was canceled after plaintiffs threatened to sue again when the shares they were to be issued fell sharply in value.
Platinum, based in Irvine, makes financial software. The suit against the company stemmed from its admission in 1994 that it had overstated revenue in 1992 and 1993 by $18 million.
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