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To: paul feldman who wrote (13336)	5/26/1999 2:22:00 PM
From: Mort	Read Replies (1) \| Respond to of 14631

Phil finally has to pay the piper. I hope they break him. >> The newspaper said that Informix's accounting firm Ernst & Young, and former chief executive Philip White will pay an undisclosed portion of the settlement<<

To: paul feldman who wrote (13336)	5/26/1999 10:09:00 PM
From: Rusty Johnson	Respond to of 14631

Informix Agrees to Pay $108 Million To Settle Shareholder Class-Action New York Times Technology By MARIA GEORGIANIS Dow Jones Newswires NEW YORK -- Informix Corp. agreed to pay $108 million to settle a class-action shareholder lawsuit alleging that the company inflated financial results so insiders could profit from stock sales. Informix's former accountant, Ernst & Young, will pay additional $34 million to settle the case. Of Informix's portion, about $3.2 million will come from the company's own coffers. An additional $13.8 million of insurance proceeds will be contributed on behalf of certain of the company's current and former officers and directors, Informix said. The company also will contribute a minimum of nine million shares of Informix common stock valued at $91 million. "The company's decision to settle was driven solely by the company's desire to remove the uncertainty, expense and distraction of continuing litigation," Informix said in a prepared statement. In the same statement, released after the close of trading Wednesday, Informix Chairman Bob Finocchio said: "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." The settlement is subject to approval by the U.S. District Court for the Northern District of California. News the settlement was first reported Wednesday morning by the San Francisco Chronicle. The database software company restated its results from January 1994 through June 1997 after it ran into accounting troubles for improper revenue recognition. Informix lowered its revenue recorded during that period by $278 million and reduced its net income by $236 million. Former Informix Chief Executive and Chairman Phillip White resigned in August 1997. Mr. White had denied the allegation of violations of securities laws cited in a number of shareholder suits against the company. The company found "errors and irregularities in the recording of specific revenue transactions," which were primarily due to lack of compliance with company procedures. Informix, the fourth-largest database software company in terms of revenue market share, has been rebuilding its credibility with Wall Street under Mr. Finocchio. The former 3Com Corp. executive, became Informix's chief executive and chairman in July 1997. Under Mr. Finochio, Informix returned to profitability and revenue growth, and diversified into areas such as data warehousing. Earlier in the month, Mr. Finocchio handed over the chief executive reins to Jean-Yves Dexmier, Informix's chief financial officer since October 1997. Mr. Finocchio, who remains Informix's chairman, cited personal reasons for leaving the CEO spot.