Mamma.com Class Action Settlement
Computer Search Engine company Mamma.com has agreed to settle on a class action lawsuit pending in a United States Federal Court. Mamma.com stated a total of $3.15 million will paid to the plaintiffs under the settlement agreement. Their insurance carrier is said to be responsible for up to $2.5 million of the payout. The remainder will be paid out by Mamma.com inc.
Guy Faure, the Company’s President and CEO, stated: “We are gratified that the litigation is likely to be settled and on favorable terms. We can now turn all of our attention and resources to continuing to build and pursue our business model and sharpen our focus on achieving profitability and enhancing share holder value.â€
In 2004, Mamma.com disclosed that the Securities and Exchange Commission had launched an inquiry into a period of intense trading and high prices of the company’s common stock. In January 2005, the press reported that Irving Kott, characterized as a Canadian stock promoter, was one of the targets of the SEC probe. More than one shareholder lawsuit was filed alleging that Kott held an undisclosed stake in the company and that he manipulated the stock.
