NEWS Shareholders complained that 3Com artificially boosted its share price in the lead up to the merger by falsely inflating its own earnings, and concealing flagging demand for US Robotics' modems. Executives of both companies were accused of insider trading by selling stock when the price was peaking. They include Eric Benhamou, CEO of 3Com, who steps down next year and Casey Cowell former CEO of US Robotics. Earlier this year 3Com announced plans to pull out of modem production to concentrate on broadband, internet telephony, web-based systems and wireless access.
3Com settles shareholder suit with $259m pay out
Networking giant 3Com is to pay its shareholders $259m to settle two class-action lawsuits following its 1997 merger with modem manufacturer US Robotics.
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