LANTRONIX ANNOUNCES SETTLEMENT OF SHAREHOLDER DERIVATIVE LAWSUIT
15 June 2005 - Lantronix

Lantronix, Inc. (Nasdaq: LTRX) today announced that the Superior Court of the State of California, County of Orange, approved the settlement of a shareholder derivative action (entitled Drake v. Bruscha, et al) pending against certain of the Company's current and former directors and former officers.

As described in the company's most recent Form 10-Q filed with the SEC, the settlement involves the adoption of certain corporate governance measures and payment of attorneys' fees and expenses to the derivative plaintiff's counsel in the amount of $1.2 million. The action was dismissed with prejudice as to all parties, including Mr. Steven Cotton, who was not a party to the settlement agreement and who had objected to the settlement. The company's insurance carrier has agreed to pay the $1.2 million, and the settlement will have no impact on the company's financial statements or results of operations.

'The resolution of this lawsuit represents another step in the right direction as the Company continues building upon the new foundation put in place over the past several years,' said Lantronix CEO Marc Nussbaum.

This settlement does not impact the securities class action or Synergetic Micro Systems securities case described in the Company's most recent Form 10-Q filed with the SEC.

http://www.lantronix.com

More News:
  • For June 2005
  • From Lantronix
  • For Wireless