KIT Digital Reaches $6M Deal To End Securities Class Actions

Law360, New York (June 28, 2013, 9:14 PM EDT) -- KIT Digital Inc. announced Monday that its insurers had agreed to pay $6 million to settle four putative securities class actions alleging the bankrupt media software company made financial statements that didn't disclose accounting irregularities.

The announcement came less than two weeks after KIT Digital received court approval for a disclosure statement and a plan support agreement under which three private equity firms have pledged $25 million to its bankruptcy reorganization. KIT had entered Chapter 11 in April seeking to sell or otherwise dispose of underperforming...
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