10:50 AM --
BigBand Networks Inc. (Nasdaq: BBND) will pony up $1.5 million to settle a consolidated securities class action lawsuit, the digital video specialist disclosed in an 8-K document filed earlier this week. (See BigBand Settles Suit .)
The suit began to bubble to the surface in the fall of 2007 when lawyers started to investigate whether BigBand had violated federal securities laws in connection with its March 2007 public stock offering. (See BigBand IPO: Boing!) It also emerged soon after BigBand projected a significant revenue miss for the third quarter of that year. (See BigBand Falls out of Tune and BigBand Looks to Resolve BigProblems.) Since then, BigBand's numbers have been more in tune with guidance. (See BigBand Tunes Up Q3.)
The proposed settlement, which releases BigBand from all claims arising from the securities laws allegations, is conditional, and still requires approval of the court. To account for anticipated approval of the settlement, BigBand said it will take a charge of $1.5 million for litigation and related expenses in its fourth quarter 2008 financial results.
Under fire from US broadcasters, Locast is appealing for funds to help it mount a legal defense, a move that was attempted eight years ago by Ivi Inc., an OTT-TV company that was sued out of existence.