DULLES, Va., July 17 /PRNewswire/ -- Orbital Sciences Corporation (NYSE: ORB) today announced that the company has reached an agreement with the counsel for the plaintiff class to settle all outstanding securities class- action litigation claims related to the company's prior-year financial restatements. The settlement, which requires no cash payment by Orbital and is subject to final documentation and Court approval, provides for $11 million to be paid to the shareholder class by the company's insurance carrier, National Union Fire Insurance Company. In addition, Orbital has agreed to issue approximately 2 million shares of common stock at a 10% discount to the market price at the time the settlement is finally approved by the Court. The warrants are designed to have a total value of $11.5 million. Orbital anticipates that final approval of the settlement will occur before year end.
"We are very pleased that, with this settlement, a difficult period in the company's history is now being closed," said Mr. David W. Thompson, Orbital's Chairman and Chief Executive Officer. "The resolution of the matter involves no cash outlay by the company and allows our stockholders to directly benefit from the settlement by participating in the warrant program," he added.
Orbital is one of the largest space technology and satellite services companies in the world, with 1999 total enterprise revenues (including revenues from unconsolidated affiliates) of approximately $915 million. The company, headquartered in Dulles, Virginia, employs about 5,500 people at major facilities in the United States, Canada and several overseas locations.
Orbital is the world's leading manufacturer of low-cost space systems, including satellites and space robotics, launch vehicles, electronics and sensors, satellite ground systems and related digital infrastructure. Its Magellan subsidiary is a pioneer in satellite-based navigation and communications products for consumer and industrial markets. Through its ORBCOMM and ORBIMAGE affiliates and ORBNAV subsidiary, Orbital is also a major operator of satellite-based networks that provide data communications, high- resolution imagery and automotive information services to customers around the world.
| Note: | "Safe Harbor" Statement Under the Private Securities Litigation |
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| Reform Act of 1995. Certain "forward-looking statements" contained in this | |
| release involve unknown risks and uncertainties that may cause the actual | |
| results, performance or achievements of the company to be materially different | |
| from any future results, performance or achievements, expressed or implied by | |
| such forward-looking statements. In particular, statements containing | |
| objectives, goals, targets and expectations are not projections of future | |
| performance. These factors and others related to the company's business are | |
| described in further detail in the company's SEC filings, including its Form | |
| 10-K and Forms 10-Q. |
SOURCE Orbital Sciences Corporation
/NOTE TO EDITORS: To learn more about Orbital, as well as to access our recent press releases, please visit the company's web site at http://www.orbital.com./
CONTACT: Barron Beneski of Orbital Sciences Corporation, 703-406-5000, or beneski.barron@orbital.com/