SUNNYVALE, Calif., August 19, 2010 – Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that it has entered into a memorandum of understanding to settle two purported derivative lawsuits alleging claims on behalf of the Company against certain individual defendants and its independent audit firm relating to the alleged backdating of stock options at the Company between 1999 and 2006 and alleged insider trading in 2004. The memorandum of understanding provides for payment to the Company of a total sum of $4,164,208 by certain individual named defendants (who were former officers or directors of the Company) and the insurers for all of the named defendants (on behalf of such defendants). It further provides that the Company will implement certain governance practices and will issue shares of its common stock valued at $1.775 million to plaintiffs’ counsel to compensate for attorneys’ fees and expenses incurred in connection with the lawsuits.
The settlement is subject to the prior satisfaction of a number of conditions, including court approval.
About Blue Coat Systems
Blue Coat Systems is the technology leader in Application Delivery Networking. Blue Coat offers an Application Delivery Network Infrastructure that provides the visibility, acceleration and security required to optimize and secure the flow of information to any user, on any network, anywhere. This application intelligence enables enterprises to tightly align network investments with business requirements, speed decision making and secure business applications for long-term competitive advantage. For additional information, please visit www.bluecoat.com
Keep up with the latest cybersecurity threats, newly-discovered vulnerabilities, data breach information, and emerging trends. Delivered daily or weekly right to your email inbox.Subscribe