Network Associates, Inc. (NYSE: NET), a California-based provider of computer security software and services, has announced the settlement of the securities class action filed in the N.D. of Cal. against the company and certain of its former executives. The settlement is for $70 million and is subject to court approval.
According to a Reuters article, the suit was originally brought in 2000 and 2001 and alleges Network Associates “misled investors by recognizing software revenue when it was shipped to distributors rather than when end-user paid for its products, a practice called ‘channel stuffing.'” The company still faces Justice Department and SEC probes over its revenue recognition practices.