Leap Wireless investors will receive millions of dollars from the service provider, which has agreed to settle a financial-restatements lawsuit.
Fierce Wireless reported on Monday that a federal court in California has approved a final deal that allows Leap to make the $13.75 million payout without admitting wrongdoing over the restatement of some financial results in 2007. Shareholders accused Leap of giving false and misleading information about its books.
Leaps insurance company will cover the $13.75 million loss.
Despite the negative outcome for Leap, though, stock analysts at SmarTrend seem bullish on shares of Leap. SmarTrend says its subscribers have outperformed Leap stock by 310 percent since 2008. Thus, SmarTrend is monitoring any developments and will alert subscribers to any change in trend.”
San Diego-based Leap, which now is a wholly owned subsidiary of Cricket Communications, has fared decently through the recent recession. More consumers have turned to no-contract wireless plans as theyve turned off landlines and moved away from pricy prepaid companies to save money.