Orthofix agrees to settle shareholders lawsuit for $11m

Orthofix (NSDQ:OFIX) agreed yesterday to pay $11 million in cash to settle a class-action lawsuit filed after it restated 3 years worth of financial statements due to improperly recognized revenues.

Earlier this year, Lewisville, Texas-based Orthofix restated its financial results for 2011, 2012 and 2013 and filed a slew of delayed quarterly reports with the SEC. The company revealed in mid-2013 that an audit had prompted the need to restate financial results after it discovered improperly recognized revenues.

Shareholders later sued, accusing the company of failing to warn them that the action would be necessary. An investigation into the financial results also revealed problems with inventory controls.

Yesterday the parties agreed to settle the lawsuit, with Orthofix paying $11 million but admitting no wrongdoing, according to documents filed with the U.S. District Court for Southern New York, which must still approve the agreement.

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