Publisher Majesco (Cooking Mama
) has settled several shareholder lawsuits, paying undisclosed amounts of cash and $2.5 million in common stock to halt a class action lawsuit, as well as a separate action filed by previous activist shareholder
Trinad Capital Master Fund.
As part of the settlement, Majesco, which was the subject of multiple lawsuits in 2006 over the collapse of its high-end publishing business after the sales failure of games such as Advent Rising
, denied it had acted improperly, settling to avoid the "uncertainty, expense and distraction" of a protracted legal battle.
Majesco says its insurance carrier will make a cash payment in an undisclosed sum to settle the litigation, and also contribute shares of its common stock valued at about $2.5 million. Under the terms of the settlement agreement, these shares will be distributed to the settlement class once the settlement becomes effective, pending final approval by the courts. The plaintiffs' attorney fees will be paid from the same settlement amount.
Separately, the action brought by Trinad on its own behalf as regards the private securities claim will be settled by a cash payment made by Majesco's insurance carrier, Majesco says, adding that it has "...taken actions which it and Trinad believe will benefit Majesco shareholders and address some of the issues raised in the lawsuit."
Activist shareholder Trinad had previously attempted
to add its own representatives to the board of directors, but following the stepping-down
of founder Morris Sutton and the in-progress reinvention of the firm as a Nintendo DS and Wii-centric publisher, it appears differences have been resolved.
In an official statement, Majesco said, "The company believes it is in its best interest to resolve these claims, in order to enable management to focus all of its efforts on executing its strategy and creating greater value for shareholders."