Macromedia Announces Settlement of Class Action Securities Litigation
Friday, August 31, 2001
SAN FRANCISCO, Aug. 30 Macromedia today announced that the company 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. Under the terms of this agreement, the claims against the company and all other defendants will be dismissed without presumption or admission of any liability or wrongdoing. The final settlement is contingent on negotiation and execution of a formal settlement stipulation and court approval. The total settlement amount is $48 million. As a result, the Company will record a non-operating pre-tax charge of approximately $28 million in Macromedia's consolidated results for the quarter ended September 30, 2001. At June 30, 2001, the Company had cash, cash equivalents and short-term investments totaling $154 million.