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Command Systems Announces Tentative Settlement in Pending Class Action Litigation
FARMINGTON, Conn.--(BUSINESS WIRE)--Dec. 8, 1998--Command Systems, Inc. (NASDAQ: CMND) today announced that it has reached an agreement in principle to settle the claims against it and certain of its officers and directors in the purported class actions filed in United States District Court for the Southern District of New York from May 1998 to June 1998 and consolidated in August 1998. The parties have signed a Memorandum of Understanding which is subject to a definitive settlement agreement to be submitted to the Court for approval.
The proposed settlement would result in the distribution of $5.75 million plus accrued interest, minus approved attorneys' fees and related expenses, to persons who purchased the common stock of Command Systems during the period March 12, 1998 through April 29, 1998, inclusive. Of the final settlement amount, the Company will be reimbursed for all but $1.65 million plus the interest thereon. In addition, the Company may be responsible for certain legal fees and related expenses incurred in connection with the litigation. There can be no assurance, however, that a definitive settlement agreement will be reached, or that, if reached, it will be approved by the Court.
Command Systems, whose main office is in Farmington, Connecticut, provides a wide range of information technology solutions and services, consulting, training and outsourcing to financial services organizations to support their evolving business processes and systems requirements. Its web site is commandsys.com.
Statements contained in this document which are not historical fact are forward-looking statements based upon management's current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements.
CONTACT:
Command Systems, Inc.
Peter Duda, 212/445-8222
KEYWORD: CONNECTICUT
BW1641 DEC 08,1998
16:00 PACIFIC
19:00 EASTERN
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