A US court has approved settlement offered by enterprise software maker SAP in a class action lawsuit filed by Sybase investors.
SAP, which had acquired Sybase for $5.8 billion, was slapped by a class action lawsuit filed by Sybase investors who claimed that price paid by SAP to shareholders was too low and the company had failed to provide sufficient information over the acquisition.
Under the settlement, the company has agreed to disclose additional information about the acquisition to the share holders. However, the amount of the settlement remains unknown.
“Under the terms of the settlement, which was agreed to in principle prior to the closing of the tender offer, investors were provided additional disclosures concerning the transaction,” SAP said in a statement.
The company also revealed that under the settlement, it won’t be asked to pay a lawyer settlement fee exceeding $1,075,000.
Sybase makes database and mobile computing application which will be used by SAP to increase its mobile offerings. SAP competes with Oracle in providing database and other key enterprise tools to businesses.
The settlement was approved by the Superior Court of Alameda County, California. The class action lawsuit filed by the share holders on May 12, 2010.