Micro Focus agreed, saying the state court plaintiffs' "jurisdictional shotgun blast" would deny recovery to the investors on the fraud claims, which are not a part of the state court action. The pension fund urged Carter to reject that argument, which it said would put the case in "limbo." The plaintiffs in the state court case claim that the federal plaintiff's proposed settlement short changes investors and ignores Carter's dismissal of the case. But they withdrew the appeal this spring while negotiating the settlement. The lawsuit also claimed the company defrauded investors who bought shares between the merger and 2019.Ĭarter dismissed the case in September and investors filed an appeal. In federal court, the investors alleged the company and its leaders had made misrepresentations in registration statements for the American Depositary Shares issued during the merger. investors sued Micro Focus in 2018 over the Hewlett-Packard acquisition. Beaver County Employees Retirement Fund decision. While some companies have since required shareholders to sue in federal court, state and federal courts are navigating litigation brought in the wake of the Cyan Inc v. Supreme Court ruling that let investors sue in state court over alleged misrepresentations in securities offerings. The dispute is an example of the kind of issue courts have grappled with following a 2018 U.S. District Judge Andrew Carter Jr he did not have jurisdiction over the case and said it undervalued their claims, which they have said are worth $2 billion.Īttorneys for the parties did not immediately reply to requests for comment on Monday. The settlement would resolve claims that the company hid looming problems in its $8.8 billion acquisition of Hewlett-Packard Enterprise's software business in 2017.īut a group of investors who sued the company in California state court told U.S. shareholders in Micro Focus International PLC are fighting over a proposed $15 million settlement with the British software company, with some arguing the deal undervalues their claims.Ī Michigan pension fund that leads a federal lawsuit against Micro Focus and the company itself both asked a federal judge in Manhattan to approve the $15 million settlement on Friday.
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