(Reuters) - Lockheed Martin Corp (LMT.N) has agreed to pay $19.5 million to settle a securities fraud class-action lawsuit accusing the company of misleading investors about the prospects for its information technology division, according to court papers.
The settlement, which requires a judge’s approval, was detailed by the plaintiffs in papers filed in U.S. District Court in New York on Tuesday.
The accord would resolve more than two years of litigation by shareholders who blamed alleged misstatements by Lockheed for a decline in its stock price.
Kelli Raulerson, a spokeswoman for Lockheed, and Samuel Rudman, a lawyer for the plaintiffs at Robbins Geller Rudman & Dowd, both declined to comment on Wednesday.
The lawsuit was filed in July 2011 by the City of Pontiac General Employees’ Retirement System, the public employees’ pension fund for Pontiac, Michigan. It named as defendants Lockheed and company executives, including Chief Executive Robert Stevens.
The plaintiffs alleged that Lockheed overstated the financial projections for its information systems and global services division for 2009. The company denied the allegations.
Lockheed shares were up 7 cents at $88.30 in morning trade on the New York Stock Exchange.
The case is City of Pontiac General Employees’ Retirement System v. Lockheed Martin Corporation, et al., U.S. District Court, Southern District of New York, 11-05026.
Reporting By Nate Raymond in New York; Editing by Gerald E. McCormick and John Wallace