ConAgra Settles

ConAgra Foods, Inc. (NYSE: CAG) has announced the preliminary settlement of the securities class action pending against the company in the D. of Neb. The complaint, originally filed in 2001, alleged that the company had engaged in fraud by permitting its United Agri Products subsidiary to prematurely recognize revenue from sales where the delivery of the goods had not yet taken place. The case is perhaps best known for generating a notable appellate decision on loss causation and materiality. The settlement is for $14 million and is “largely covered by insurance.”