Comverse Settles Securities Class Action

By Sarah Pierce

Comverse Technology has agreed to pay $225 million to settle a class action lawsuit accusing the software company of securities fraud. If you purchased or acquired Comverse stock between April 30, 2001 and January 29, 2008, you can claim money from this class action settlement.

The lawsuit alleges approximately 188.4 million shares of Comverse common stock were traded and damaged during the class period. The $225 million settlement will reimburse stockholders for their estimated losses during that time and will be paid out by Comverse in five installments through August 15, 2011. The amount of payment you can receive from the Comverse class action settlement will depend on the number of valid claim forms submitted by class members, how may Comverse securities you bought during the class period, and when you bought and/or sold the securities. It’s estimated that if all class member make a claim, the average payment will be $1.19 per damaged share of Comverse stock. Of course, the lawyers need their share of the pie too, so it’s estimated that up to $0.33 per share may be taken out of each stock reimbursement for fees and expenses.

All class members are automatically included in the class action settlement, which means you’re bound by its terms (in other words, you can’t sue MoneyGram over these allegations.) But if you want to receive money from this class action settlement, you must submit a valid claim form postmarked no later than August 5, 2010. More information about the MoneyGram class action settlement and how to submit a claim form can be found in the settlement notice.