Tigera Group Inc, the Belmont, California company that was formerly called Fortune Systems Corp, has at last won agreement in principle to settle the Fortune Systems securities litigation filed against the company following the its initial public offering of shares in 1983. The proposed settlement of claims calls for a payment of $12m to the plaintiff class, the sum to be substantially funded by insurance policies in place during 1983. The company’s own contribution to the settlement will be less than $1m. Given the expense of litigation and the distraction of management time required by such litigation, we are very pleased with the outcome, says chief operating officer Allen May. This settlement presents a practical and immediate solution to what has been an issue for some five years. It will allow the company to concentrate its resources on the implementation of our announced strategy of acquisition and diversification. And clearly, it will enhance the position of our subsidiary, Tigera Corp, as a Unix office automation software vendor. Tigera Corp continues to develop office products to run under Unix, and the company is now looking for related acquisitions following sale of its hardware business to SCI Systems Corp. Fortune generated such large accumulated losses that Tigera now has very substantial tax credits available to maximise the benefits from any highly profitable company it may choose to acquire.
