KongZhong (KONG) issued a release saying it has reached an agreement to settle a securities class action pending against it, certain of its officers and other co-defendants in the United Stated District Court for the Southern District of New York and arising out of the Company's 2004 initial public offering.
The tentative settlement, which is subject to completion of final documentation and preliminary and final court approval, is reflected in a Memorandum of Understanding, dated as of September 13, 2005, between the lead plaintiff, the company and the other defendants.
Under the proposed settlement, the Company will pay $3.5 million into a settlement fund for persons who purchased or sold the Company's ADSs between July 9, 2004 and August 17, 2004.
At this time, there can be no assurance that the parties will be able to agree on final documentation or that the settlement will receive preliminary or final court approval.
