Xerox Corp. (NYSE: XRX), a Connecticut-based provider of document management technology and services, has announced the preliminary settlement of the securities class action pending against it in the D. of Conn. The case, originally filed in August 2000, stems from allegations that Xerox improperly accounted for its leasing of copiers and other equipment to customers. Xerox eventually engaged in a significant financial restatement.
The settlement is for $750 million, of which Xerox will pay $670 million and KMPG, who audited the company’s financial statements, will pay $80 million. Xerox expects to pay its portion of the settlement in five installments over the course of this year. The New York Times and The Wall Street Journal had articles about the settlement in their Friday editions.