eSymantec Agrees To Enter Agreement, Plaintiffs Seek Court’s Initial Settlement Approval
Plaintiffs led by SEB Investment Management AB are asking a federal court to approve the initial settlement they have agreed to enter into with the cybersecurity firm Symantec (Norton LifeLock) and their board of directors.
SEB Investment Management Asks For Judge’s Thumbs Up
According to online reports, Symantec has agreed to the plaintiffs’ terms and conditions, thus entering into a settlement agreement with them.
The settlement agreement originated from an original class action lawsuit filed against Symantec almost more than three years ago.
The Symantec SEC Class Action Lawsuit accused Symantec and its board of manipulating their balance and finance sheets to show off a much stronger and robust market performance to fool investors of the company’s actual financial standing.
Once exposed, Symantec’s stocks suffered a huge drop at the stocks exchange, which reportedly resulted in a lot of investors experiencing the brunt of the incurred financial losses. It is said that the company’s estimated $6 billion worth of market capitalization got wiped out after the scandal.
In the official filing in court, the complainants have contended that they should be granted preliminary approval for the settlement, for they would not gain any recovery for all of the money they have already lost.
On the other hand, Symantec’s legal counsel has reiterated that the company did not do any wrongdoings in filing its financial reports.
Per initial reports, Symantec has agreed to open up and allocate a fund worth $70 million that would be subdivided between the qualified Class participants after the other related legal fees have been subtracted from the total amount.
United States District Judge William Alsup will weigh in on the merits and validity of the settlement agreement’s terms before releasing a decision.
Symantec, now formally referred to as NortonLifeLock Inc., is an Arizona-based software firm specializing in providing cybersecurity solutions to its target customers. Founded almost four decades ago, Symantec has grown to become one of the listed companies to appear in the Fortune 500 feature.
The company is currently headed by its CEO Vincent Pilette since his ascent to the position back in late 2019. Symantec has recorded revenue of $2.49 billion as of 2020.
Editor’s Note on Symantec Settlement Details 2021 – Norton LifeLock SEC Class Action To Settle:
This report features the latest developments in the settlement agreement between Symantec and its investors after the company experienced a huge financial loss three years ago when allegations of misleading financial statements plagued the company.
Case Name(s) & No.(s): SEB Investment Management AB v. Symantec Corp. et al.; Case No.: 3:17-cv-02902
Jurisdiction: United States District Court for the Northern District of California
Products/Services Involved: Company’s financial report
Allegation(s): Symantec and their board lied to their customers about the company’s actual financial status, which ended up in investors losing their money.
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