Tellabs Strikes $7.4M Deal In Securities Action

Law360, New York (April 5, 2011, 6:00 PM EDT) -- Telecommunications supplier Tellabs Inc. reached a preliminary $7.4 million settlement in an Illinois federal court Tuesday with a class of plaintiffs alleging the company deceived investors into purchasing its stock at artificially inflated prices.

Tellabs and the plaintiff investors asked Judge Amy St. Eve to approve the settlement, which was agreed upon Friday, according to documents filed in the U.S. District Court for the Northern District of Illinois.

The settlement agreement says Tellabs will compensate shareholders out of the $7.4 million cash fund, which the plaintiffs...
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