Symbol Technologies Announces Tentative Settlement in Telxon Corporation Class A
2003-11-13 HOLTSVILLE, N.Y.
Symbol Technologies, Inc. today announced that its wholly owned subsidiary, Telxon Corporation, has reached a tentative settlement of all pending shareholder class action lawsuits against Telxon.
Under the settlement, Telxon anticipates that it will pay $37 million to the class. As a result of anticipated contributions by Telxon's insurers, Telxon expects that its net payment will be no
more than $25 million.
Telxon has not settled its lawsuit against its former auditors, PricewaterhouseCoopers, and, as part of the settlement of the class action announced today, Telxon has agreed to pay to the class,
under certain circumstances, up to $3 million of the proceeds of that lawsuit.
The settlement announced today is subject to the negotiation and execution of final settlement documentation, approval by the board of directors, the agreement of Telxon insurers and approval by
the United States District Court in the Northern District of Ohio.
It is expected that the settlement will be submitted for final court approval in the first quarter of 2004. The lawsuits against Telxon initially were filed in 1998, more than one year before
Symbol Technologies acquired Telxon Corporation on November 30, 2000.