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).
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