Paradyne Networks, Inc. (Nasdaq: PDYN), a Florida-based provider of high-speed network access solutions for broadband voice, data and video, has announced the settlement of the securities class action pending against the company in the M.D. of Fla. The proposed settlement is for $3 million, to be funded by Paradyne’s insurance, and is subject to approval by the court.
The plaintiffs have alleged that Paradyne and certain of its officers and directors fraudulently inflated the price of the company’s stock from September 1999 to September 2000 by making false and misleading representations about the company’s practice of managing and reporting its inventory. The court denied the defendants’ motion to dismiss in April 2002.