Tripath Announces Agreement to Settle Federal Securities Class Action Litigation
SAN JOSE, Calif.—(BUSINESS WIRE)—July 12, 2005—
Tripath Technology Inc. (Nasdaq:TRPH) today announced
that it has entered into a Stipulation and Agreement of Settlement
(the "Stipulation") to settle the securities class action litigation
entitled In re Tripath Technology Inc. Securities Litigation, Master
File No. C 04 4681 SBA, pending in the United States District Court
for the Northern District of California (the "Court") against Tripath
and certain of its current and former officers and/or directors (the
"Class Action"). The settlement class consists of all persons who
purchased the securities of Tripath between January 29, 2004 and June
13, 2005, inclusive. As part of the Stipulation, Tripath and the other
defendants continue to deny any liability or wrongdoing.
Under the terms of the Stipulation, the parties agreed that the
Class Action will be dismissed in exchange for a payment of $200,000
in cash by Tripath and the issuance of 2.45 million shares of Tripath
common stock which shall be exempt from registration pursuant to
Section 3(a)(10) of the Securities Act of 1933. The Stipulation
remains subject to the satisfaction of various conditions, including
without limitation (1) final approval of the Stipulation by the Court,
including a finding that the 2.45 million shares of Tripath common
stock to be issued are exempt from registration pursuant to Section
3(a)(1) of the Securities Act of 1933 and (2) notification to members
of the settlement class in the Class Action.
Terms for distribution of the settlement funds to class members
after final Court approval of the Stipulation, and other terms of
settlement, will be disclosed in a notice to be sent to class members
after preliminary court approval of the Stipulation.
"This settlement puts the federal securities litigation behind
Tripath and will permit us to better focus on running the business and
Tripath's future," said Jeffrey L. Garon, Tripath's Vice President of
Finance and Chief Financial Officer.
About Tripath
Based in San Jose, Calif., Tripath Technology Inc. is a fabless
semiconductor company that focuses on providing highly efficient power
amplification to the TV, Home Theater, Automotive and Consumer & PC
Convergence markets. Tripath owns the patented technology called
Digital Power Processing (DPP(R)), which leverages modern advances in
digital signal processing and power processing. Tripath markets audio
amplifiers with DPP(R) under the brand name Class-T(R). Tripath's
current customers include, but are not limited to, companies such as
Alcatel, Alpine, Hitachi, JVC, Samsung, Sanyo, Sharp, Sony and
Toshiba. For more information on Tripath please visit Tripath's web
site at www.tripath.com.
Contact:
Tripath Technology Inc.
Jeffrey L. Garon, 408-750-6801
