Candela to Pay $3.85 Million, Fees in Settlements

Candela Corp., the maker of cosmetic lasers whose shares have fallen 91 percent in the past year, agreed to pay $3.85 million to settle federal securities claims.

Candela also will cover legal fees in a Massachusetts lawsuit as part of the agreement. The Western Pennsylvania Electrical Employees Pension Fund, in a complaint filed in April in federal court in Boston, alleged that Candela issued false and misleading statements related to the value of the company’s stock.

The shareholder’s lawyers said in settlement papers filed Jan. 16 that they are “mindful of the inherent problems of proof of, and possible defenses to, the allegations.”

Company officials denied any wrongdoing as part of the two settlements, which are subject to court approval, Candela said today in a statement.

The federal lawsuit also alleged company officials withheld information on risks of a patent-infringement lawsuit by rival Palomar Medical Technologies Inc.

In October, Palomar won a ruling from a federal jury in Lufkin, Texas, that it didn’t infringe a Candela patent.

Candela, based in Wayland, Massachusetts, reported a net loss of $9.1 million in the fiscal year ended in June, on sales of $148.2 million.

Candela fell 2 cents, or 5.1 percent, to 39 cents in Nasdaq Stock Market trading.

The federal case is Western Pennsylvania Electrical Employees Pension Fund v. Candela Corp., 08CV10551, U.S. District Court, District of Massachusetts (Boston).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net.

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.