*NEWS*XEROX TO PAY $ 670M TO SETTLE LAWSUIT

  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • ncc-banner-902-x-177-june-2017
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
  • banner-01-26-17b
  • 2toner1-2
  • Print
  • 4toner4
  • ces_web_banner_toner_news_902x1776
Share

*NEWS*XEROX TO PAY $ 670M TO SETTLE LAWSUIT

 user 2008-03-31 at 11:08:00 am Views: 58
  • #19830

    Xerox stumps up $670m to settle lawsuit
    Xerox is to pay $670m to settle a securities lawsuit which dates back to 2000, without admitting any wrongdoing.
    The
    world’s biggest provider of grey copier boxes said yesterday that it
    had been granted preliminary court approval to settle the Carlson v.
    Xerox Corp lawsuit.The case had been brought on behalf of investors who
    bought up stock and bonds in the company between 17 February 1998 and
    27 June 2002.

    Xerox spent a lot of time in the early Nineghties
    hopping in and out of court over its book-keeping practices. In 2002
    the firm paid a $10m penalty to settle US Securities and Exchange
    Commission charges that Xerox had fluffed its numbers to inflate
    less-than-pretty profits. Eventually, it was forced to restate half a
    decade’s worth of results.The company said that it planned to take an
    after-tax charge of $491m in the first quarter of this year and added
    that it has put reserves in its piggybank for other pending
    securities-related cases. It will stump up the cash for the settlement
    in five instalments this year.

    Former independent auditor and
    co-defendant in the lawsuit KPMG will pay $80m into the settlement
    fund.Xerox boss Anne Mulcahy sought to ease shareholders’ concerns
    about the painful settlement. She said: “Our strong financial position
    gives us the flexibility to resolve this issue while continuing to
    deliver shareholder value through share repurchase, dividends and
    acquisitions.”Last November Xerox restored its quarterly dividend after
    a six-year hiatus.