OCZ Settled Consolidated Shareholder Class Action Litigation

OCZ Technology Group, Inc. has reached a settlement in principle in the federal shareholder class action litigation filed in connection with the company’s financial restatement.

The settlement is subject to negotiation of final documentation and court approval. Subject to Court approval, the settlement of $7.5 million will be funded by the company’s D&O liability insurance. The settlement may include an additional payment of the lesser of $6 million or 4% of the net proceeds in the event that the company or any portion of it is sold within six months of the executed settlement agreement. This settlement would resolve the consolidated shareholder class actions pending in connection with the restatement.

“We are pleased to have reached a settlement in principle in regards to the shareholder class action litigation, and we believe this is a positive step for the company,” said Ralph Schmitt, CEO, OCZ. “The team is highly focused on completing the financial restatement process shortly and becoming current with our filings.”