KO&L OBTAINS FINAL APPROVAL OF $15.25 MILLION SETTLEMENT OF ASHWORTH, INC. SECURITIES LITIGATION
On July 2, 2004, after five years of hard fought litigation, K&O and it co-lead counsel agreed to a settlement in principle of this action currently pending in the United States District Court for the Southern District of California. The settlement, which was approved by the Court, provided for Ashworth, Inc. and its insurance carriers to pay $15.25 million in cash, including a $3 million contribution by the Company. In addition, as a condition of this settlement, the Company also agreed to enact a broad series of corporate governance measures designed to strengthen the Company’s internal controls and audit functions.
The institutional Lead Plaintiff in this action was the New Hampshire Retirement System (“NHRS”). According to the NHRS chairman, Ed Theobald, this settlement represents a significant achievement on behalf of investors. Mr. Theobald stated: “The settlement of this case brings dual benefits to persons and institutions that have invested in Ashworth. First, investors during the class period will be able to participate in a substantial monetary recovery. Second, the corporate therapeutics that are part of the settlement represent a significant step forward for governance at Ashworth and are in accord with the movement toward greater board independence and more effective corporate management in America.” In order to be eligible to share in the settlement proceeds, it was necessary for you to submit a Proof of Claim and Release by December 21, 2004. Any questions concerning the action or the settlement can be submitted to us by means of the Contact Us page of this web site.
