Top reveals $1.2M plaintiff payoff

Top Ships will pay $1.2M to settle the class-action investor suit stemming from its 2006 accounting restatement.

The settlement deal confirmed today will be filed with the US Southern District of New York judge for approval, after which it will be provided to shareholders for consideration. The $1.2M sum includes payment for attorney fees and plaintiffs’ counsel, suggesting that the actual payout to class-action plaintiffs will be slim. A settlement agreement had been reached in the Top case in late January. “We’re extremely pleased to have resolved this matter,” said Top CEO Evangelos Pistiolis. “We have settled this dispute for a modest amount and eliminated the distraction to management that protracted litigation would have caused. We have always believed that the class action was meritless,” he continued, adding: “We intend to continue to rebuild shareholder confidence in Top”. In November 2006, Top revealed that it would restate first- and second-quarter earnings following a change in accounting of its 13-ship sale-leaseback deal. The company’s share price plummeted, spurring numerous shareholder suits, which were consolidated last July.
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