Red Hat Strikes $20M Deal In Shareholder Action

Law360, New York (March 30, 2010, 12:39 PM EDT) -- Red Hat Inc. has reached a $20 million settlement with shareholders claiming the open source software developer falsified financial statements in the early 2000s, bringing the long-running class action close to a conclusion.

The plaintiffs filed a motion Monday in the U.S. District Court for the Eastern District of North Carolina asking Judge W. Earl Britt to give preliminary approval of the settlement.

Red Hat said in a December filing with the U.S. Securities and Exchange Commission that it had reached an agreement in principle with...
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