South Korea-based Gravity Co. Ltd., an online game developer, said Monday it and other defendants came to a preliminary agreement to settle a class-action lawsuit for $10 million.
The lawsuit pertains to purchases of Gravity's American Depositary Shares between Feb. 7, 2005, and Nov. 10, 2005, and was filed on behalf of Gravity securities buyers.
Under the proposed settlement, a $10 million fund will be set up to settle buyers' claims, of which Gravity will pay $5 million. The company said settlement administration and plaintiffs' lawyers' fees and various expenses will be paid from the fund before class-action suit members are paid.
Gravity said in a statement that it "has denied and continues to deny any and all wrongdoing in connection with this matter, but believes that given the uncertainties and costs associated with litigation, the settlement is in the best interests of the company and its shareholders."
