PASADENA, Calif. — The Los Angeles County Employees' Retirement Association settled a federal class-action suit as lead plaintiff against Enterasys Networks Inc., Andover, Mass., that claimed the firm artificially inflated its share price through accounting manipulations. The firm will pay plaintiffs $17 million in cash and $33 million in stock as part of the tentative settlement. The company did not admit wrongdoing.
The agreement, announced Oct. 17, requires approval of Judge Steven J. McAuliffe in U.S. District Court in Concord, N.H. Under the agreement, certain shareholders can nominate alternative candidates to Enterasys' board, and Enterasys must support a plan to eliminate staggered board terms and provide for annual election of all directors.