Judge Chucks $38M Cadence Class Action Settlement

Law360, New York (August 26, 2011, 10:01 PM EDT) -- A California federal judge on Friday refused to approve a $38 million settlement in a putative securities class action accusing Cadence Design Systems Inc. of artificially inflating its value, calling the lead plaintiff's proposal “woefully inadequate.”

The suit, filed in October 2008, accuses Cadence of pumping up its value just before a stock price plunge stemming from accounting errors.

The Alaska Electrical Pension Fund had asked the court in June to approve the agreement, but U.S. District Judge Samuel Conti said the lead plaintiff had not...
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