Issaquah, Washington-based Egghead Discount Software Inc has agreed to settle a shareholders’ lawsuit for $2.9m: the suit, which alleged misstatements in the company’s initial public offering in June 1988 and in subsequent public filings, was due to go to trial in June 1991, and the company said it settled rather than incur substantial defence costs; it says it still believes the suit is entirely without merit; since the suit was filed in July 1989, Egghead has reserved a total of $4.1m for actual and expected legal expenses and of that, it now expects to spend between $2.8m and $3.1m, with the remaining $1.0m to 1.3m to go towards the settlement, so it reckons it will have to find another $1.6m to $1.9m in the fiscal 1991 second quarter to settle.
