Austin, TX: (Nov-05-07) A securities class action lawsuit was brought against Motive, Inc., a leading provider of management software for broadband and mobile data services. In a recent development in the case, company sources confirmed that the company has reached an agreement in principle to settle the securities class action litigation pending in US District Court in the Western District of Texas. It was also announced that the company agreed in principle to settle a shareholder derivative litigation pending in the same court.
Spokespersons claimed that with regard to the class action, the agreement in principle provides that all claims against the company and individuals named as defendants will be dismissed without presumption or admission of any liability or wrongdoing. Additionally, Motive agreed to pay to the plaintiff class a total of $7 million. The payment will be comprised of $4.5 million from insurance proceeds and $2.5 million from Motive. Additionally 2.5 million shares of the company's stock will be issued by Motive for the benefit of the plaintiff class. In the shareholder derivative litigation, the agreement stated that the company will adopt certain governance provisions. [