Navarre settles class action lawsuit

Company denies liability but wishes to avoid distraction of litigation

By Susanne Ault -- Video Business, 7/9/2007

JULY 9 | Navarre Corp. has agreed to settle a pending securities class action suit filed against it and some of its former executives. The distributor’s proposed settlement is subject to certain conditions, including approval by the U.S. District Court for the District of Minnesota.

Under the settlement terms, a fund will be created to pay class action members’ claims and plaintiffs’ attorney fees. Navarre’s insurance company will be paying into this fund, and there will be no contribution from the distributor itself. There should be no impact of this payout on Navarre earnings going forward.

Although settlement terms have been agreed upon, Navarre continues to deny any liability.

“We have agreed to settle this lawsuit so that we may put this matter behind us and continue to focus Navarre’s energies and resources on the continued accomplishment of its business objectives,” said Ryan Urness, Navarre general counsel. “We have fought these allegations for over two years, and we were fully prepared to take this matter to trial on the merits. Although we believe we would have prevailed, this settlement provides the company with a sensible opportunity to avoid the significant distraction that could otherwise result from this litigation.”