Feeds

3Com squares class actions with $259m

Admits no blame, but..

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

3Com has settled two class actions lawsuits springing from the 1997 takeover of US Robotics with a whacking great big cash payout of $259 million.

3Com admits no wrongdoing, but it seems an awful lot to shell out just to get some dissident shareholders off its back.

USR deal-related litigation is not over yet for 3Com- the company is fighting a a case which will reach the courts next year.

The settled lawsuits revolve around allegations of securities fraud and insider trading. 3Com saw its stock value double in the two months leading up to the completion of the $7bn takeover of US Robotics in June 1997. During this time, 3Com execs flogged $200 million worth of shares. Only problem was, USR had had a couple of crap months in April and May 1997, wracking up $160 million in losses.

3Com didn't tell the world until Ocotober of that year, to the outrage of many shareholders who bought in April and May. By keeping schtum, 3Com had artificially - and conveniently for its share-offloading execs, inflated the price of its stock, they argued.

Furthermore, 3Com had misrepresented the state of the modem market, they said.

Let's accept, for one moment, the premise of the investors'case. However, they haven't done too badly if they held onto their 3Com stock. Although, US Robotics turned out to be a lot of a dog, the company did own Palm Computing, a business currently worth $26 bilion, and still owned by 3Com. ®

Website security in corporate America

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.