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California Micro Settlement Approved

March 11, 1997|Times Staff and Wire Reports

California Micro Devices Corp. said a federal judge approved a $13-million settlement to end 10 class-action shareholder lawsuits filed against the company in 1994, when its stock price plunged. The maker of electronic components said Judge Vaughn Walker of the U.S. District Court in San Francisco agreed to the cash and stock settlement, which was amended in September to provide shareholders more cash. Walker had rejected the previous offer, saying it didn't include enough cash. The shareholders charged California Micro with violating federal securities laws by issuing misleading financial reports. The shareholders sued in late 1994 after news of accounting irregularities at the company prompted a 46% drop in its share price. In September, the company amended its settlement to offer more cash and fewer shares, while keeping the total value at $13 million. Shareholder lawyers approved the offer. The Milpitas-based firm's shares rose 6 cents to close at $7.06 on Nasdaq.

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