Isilon Settles Shareholder Action Over IPO For $15M

Law360, New York (September 21, 2009, 2:47 PM EDT) -- Data-storage system provider Isilon Systems Inc. has settled a proposed class action brought by shareholders after a lucrative initial public offering gave way to plunging stock prices.

Isilon announced Monday that it would pay $15 million to settle the claims, brought in November 2007 by shareholder Marcel Youakim in the U.S. District Court for the Western District of Washington.

Youakim accused the company and several directors of violating securities laws with unrealistic projections in connection with the company's IPO.

Isilon, a provider of clustered-data storage systems...
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