Red Hat To End Securities Class Action For $8.8M

Law360, New York (December 16, 2009, 6:07 PM EST) -- Red Hat Inc. has agreed to pay $8.8 million to settle a shareholder class action accusing the open source software company of falsifying financial reports in the early 2000s.

The company said it had reached an agreement in principle to resolve the suit pending in the U.S. District Court for the Eastern District of North Carolina in a regulatory filing Tuesday with the U.S. Securities Exchange Commission.

Red Hat has put aside $8.8 million from its results for the quarter ending Nov. 30 to cover the...
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