SAN FRANCISCOInternational Rectifier Corp. has reached an agreement to settle a class action lawsuit for $90 million, the company said Friday (July 31).
Under the terms of the settlement, IR (El Segundo, Calif.) would pay $45 million and its insurance carriers would pay the other $45 million. The plaintiffs are purchasers of IR stock between July 31, 2003 and Feb. 11, 2008.
The suit was first filed in April 2007 in U.S. District Court for the Central District of California, alleging misconduct by IR and certain of its former officers and directors over revenue recognition.
The proposed settlement would resolve all class members' claims against the company and the former officers and directors, IR said. It is subject to negotiation and execution of a formal settlement agreement and is dependent upon final approval by the court, the company said.
IR said it expects the approval process to be completed before the end of the year.