Majesco reaches settlement in shareholder suit
Class-action shareholder suit resolved, but legal issues remain for Cooking Mama publisher.
Last year, a group of Majesco Entertainment shareholders sued the company, saying former CEO Morris Sutton and his executive sons Jesse and Joseph were running the company exclusively for their own benefit. Today the Cooking Mama publisher announced that it has reached a settlement agreement in the case, putting one more of its legal troubles to rest.
As part of the settlement, Majesco is denying that it acted improperly but will give the plaintiffs roughly $2.5 million in cash and shares. That sum was chalked up as legal fees in the company's second-quarter results, announced in June.
"The company believes it is in its best interest to resolve these claims, in order to enable management to focus all of its efforts on executing its strategy and creating greater value for shareholders," the company said in a statement.
Majesco's woes began in mid-2005, after a downgraded financial forecast and the sudden resignation of then-CEO Carl Yankowski led to the stock shedding more than half its value in a single day. That was followed by a flood of shareholder lawsuits that has not yet abated.
In July, another investor filed suit against the company, saying he purchased more than a quarter of a million shares of Majesco stock for an artificially inflated sum of more than $3 million. As of press time, Majesco stock was trading up more than 2 percent to $1.35, meaning that shareholder's investment would be worth less than $368,000.
13 Comments
Subscribe to GameSpot's YouTube Channel
Hot Stories
Newsmakers
-
Mortal Kombat developer to diversify in 2012
NetherRealm creative director Ed Boon says there's an "assumption" another Mortal Kombat game to come, but wants to work on new IPs on multiple formats, genres. Full Story
- Posted Jan 30, 2012 8:17 am PT
- 59 Comments
Featured Stories
-
Star Wars: The Old Republic denounced for gay relationships
Family Research Council says BioWare has "gone to the dark side" with promise to include same-gender romance in MMO game. Full Story
- Posted Jan 30, 2012 10:46 am PT
- 511 Comments
-
No new Xbox in 2012 - Microsoft
Company's French marketing manager says Microsoft not ready to roll out new console this year, won't compete with Nintendo and the Wii U. Full Story
- Posted Jan 30, 2012 9:51 am PT
- 359 Comments
-
Kingdoms of Amalur: Reckoning online pass unlocks seven quests
New copies of 38 Studios' fantasy RPG come bundled with code to download House of Valor faction questline; studio says it was "always intended" to be DLC. Full Story
- Posted Jan 27, 2012 2:53 pm PT
- 345 Comments
-
Sony sweetens PS Vita 3G deal
$300 version of new handheld will now include free 8GB memory stick, PSN game, AT&T 3G data plan access; $350 First Edition preorders to receive just the PSN game and data plan. Full Story
- Posted Jan 27, 2012 2:24 pm PT
- 244 Comments
-
Nintendo considering new name for Wii U - Report
Underwhelming reaction and concerns of customer confusion supposedly have the Mario maker weighing its options for a rebranding before this year's E3. Full Story
- Posted Jan 27, 2012 11:12 am PT
- 512 Comments
Submit News
Recent News
-
Steam transaction history compromised
Valve confirms 2004-2008 purchase data copied by intruders; no evidence encrypted credit cards, billing info cracked.
