Corel Corp. announced on Monday that it has reached an agreement to settle all claims in a class-action lawsuit against the software company and former Chief Executive Officer Michael Cowpland.
The lawsuit was launched in a United States district court in Pennsylvania three years ago on March 13, 2000 by Anthony Basilio and Fred Spagnola, both shareholders at the time the lawsuit was launched. The suit alleged that Corel – while under the direction Cowpland – failed to disclose a loss from Corel’s financial results for the fiscal fourth quarter ending Nov. 30, 1999.
The claims were made on behalf of a group of people who purchased stock in the Ottawa-based company on the NASDAQ stock exchange between Dec. 7, 1999 and March 20, 2000, the company said in a statement.
In a statement, Corel said the claims are without merit, but that it was in the best interest of the company and its shareholders to end the expense and distraction of the lawsuit.
Corel also said that the settlement would not have a material affect on Corel’s financial condition and would be funded through the company’s existing insurance benefits.
The value of the settlement was not revealed.
The company also announced this week that Joel Price will be its new interim chief financial officer replacing Martin Catto.
Catto joined Corel on an interim basis and as a result of personal commitments, will return to his home in New York, where he will resume his consulting career, Corel said.
Corel can be found on the Web at www.corel.ca.