LINCOLN, Neb.-Transcrypt International Inc. received final approval in the U.S. District Court for the District of Nebraska on the settlement of pending shareholder class action lawsuits against the company and certain of its former officers.
Transcrypt noted that the settlement resolves an identical stockholder class action lawsuit pending in the District Court for Scottsbluff County, Neb.
Under the settlement agreement, Transcrypt will transfer 4.4 million shares of its common stock, along with a cash settlement provided by the company’s insurance carrier, to a settlement fund. Transcrypt would also pay $2 million to the fund if there is a purchase of a majority of the company by acquisition or merger before Jan. 1, 2001.
“We are pleased that we have reached an equitable resolution of the company’s class action lawsuit,” said Mike Jalbert, chairman, president and chief executive officer of Transcrypt. “With the class action lawsuit behind us, we will continue to focus our resources to take advantage of growth opportunities in our markets.”
