Lockheed pays $19 million to settle securities fraud class action

Posted on: March 21st, 2013 by Steve Larson

Stocks and sharesA class of Lockheed Martin Corp. investors asked a New York federal court Tuesday to approve a $19.5 million settlement to end its securities suit alleging the defense giant misled investors about the strength of its information systems business.

Lead plaintiff City of Pontiac General Employees’ Retirement System asked U.S. District Court Judge Jed S. Rakoff to approve the settlement about two months after Judge Rakoff agreed to certify the investor class. The shareholders had accused the company of puffing up investor expectations about Lockheed’s information systems.