Crossroads Settles

Crossroads Systems, Inc. (Nasdaq: CRDS), an Austin-based provider of storage networking solutions, has announced the preliminary settlement of the securities class action pending against the company in the W.D. of Tex. The suit was originally filed in 2001 and alleges that the company made misstatements about the capabilities of its router products and financial results. In a decision earlier this year, the U.S. Court of Appeals for the Fifth Circuit partially reversed a grant of summary judgment for the defendants. The settlement is for $4.35 million, with $3.35 million to be paid by Crossroads’ insurance carriers.

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