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INFORMIX ANNOUNCES SETTLEMENT OF CLASS-ACTION LAWSUITS
MENLO PARK, Calif.--May 26, 1999--Informix® Corporation (NASDAQ: IFMX),
today announced that a memorandum of understanding has been signed with
respect to the settlement of pending private securities and related
litigation against Informix, certain of its current and former officers and
directors, and Ernst & Young LLP, Informix' former independent accountants,
subject to court approval. With the exception of two very small cases, the
settlement will resolve all litigation arising out of the restatement of
certain of Informix' financial statements that was publicly announced in
November, 1997.
If the settlement is approved, Informix will pay approximately $3.2 million
in cash. An additional amount of approximately $13.8 million of insurance
proceeds will be contributed on behalf of certain of the Company's current
and former officers and directors. Finally, the Company will contribute a
minimum of 9 million shares of Informix common stock worth $91 million.
Ernst & Young will pay $34 million in cash. The total amount of the
settlement will be $142 million. Given that the settlement is funded
largely through insurance and stock, the Company believes that the
settlement terms are very favorable.
The Company's decision to settle was driven solely by the Company's desire
to remove the uncertainty, expense and distraction of continuing
litigation. "We are pleased that we have reached this settlement. It is a
well-structured solution that allows Informix to move forward unhindered.
We can now devote all of our effort to building the new Informix," said Bob
Finocchio, Informix chairman and chief executive officer.
About Informix
Informix Corporation, based in Menlo Park, California, provides innovative
database products that assist the world's major corporations to attain
competitive advantage. Informix is widely recognized as the technology
leader for corporate computing environments ranging from small workgroups
to very large parallel processing applications. Informix' database server,
application development tools, superior customer service, and strong
partnerships enable the company to be at the forefront of major information
technology solution areas including data warehousing, high performance
OLTP, and Web/e-commerce. For more information, contact the sales office
nearest you or visit our Web site at www.informix.com.
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© 1999 Informix Corporation. All rights reserved. The following are
trademarks of Informix Corporation or its affiliates, one or more of which
may be registered in the U.S. or other jurisdictions: Informix.
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