Medical device company Orthofix International NV has agreed to pay $11 million to settle a New York federal court investor class action alleging that the company glossed over internal issues before an eventual earnings restatement, according to a filing in New York federal court.
The investors filed a motion Monday seeking preliminary approval of the deal. The suit accuses Orthofix and several of its executives of violating the Securities Exchange Act of 1934 by neglecting their duty to promptly disseminate accurate information on the company's financial condition and performance.
The deal follows “a substantial investigation preceding the filing of two detailed complaints, full briefing and oral argument on defendants’ motions to dismiss the complaints, extensive fact discovery including the service of 25 subpoenas on nonparty witnesses ... and production and review of over 4.5 million pages of documents,” the investors said.
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