American Italian Pasta Co. will has settled a shareholder lawsuit over alleged securities law violations to the tune of US$25m.
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The pasta firm will pay $11m in cash – which will be stumped up by the company’s insurers – and $14m in shares in the company.
The alleged wrongdoing dates back to August 2005 when American Italian Pasta said it was delaying the filing of its financial accounts to US share watchdog, the US Securities and Exchange Commission.
American Italian Pasta has yet to file its accounts for the last two fiscal years as the numbers need to be restated to account for brand impairments.
The company had traded on the New York Stock Exchange until late last year when its shares were pulled following a failure to file the reports to the SEC on time.
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By GlobalData“The settlement of the federal securities class action lawsuit is an important step in the company’s continued turnaround,” said CEO Jim Fogarty. “We are pleased to move this matter toward final conclusion as we continue to focus on serving our customers and improving our business.”
