(Reuters) – Dell Technologies Inc has reached a $1 billion settlement of a lawsuit accusing it of short-changing some investors in an approximately $24 billion transaction where it returned to being a publicly traded company.
In a regulatory filing on Wednesday, Dell said the settlement is subject to approval by a Delaware Chancery Court judge, and will be reflected in its third-quarter results. It said insurers may pay some of the settlement amount.
The disputed December 2018 transaction related to Dell’s interest in software maker VMWare.
Dell paid $14 billion in cash and issued 149.4 million Class C shares in exchange for all outstanding Class V shares.
It said holders of the Class V shares claimed that the transaction was conducted at billions of dollars below fair value.
The settlement also covers claims against Goldman Sachs Group Inc, a defendant in the lawsuit, Dell said.
(Reporting by Jonathan Stempel in New York;Editing by Elaine Hardcastle)
