Computer Memories Pays $7.5 Million to Resolve Suit

Computer Memories settled a stockholder suit by contributing $7.5 million in cash and stock to a fund that will pay off claims and cover attorney costs. The overall settlement will be $15.5 million, with $7 million coming from an insurer for Computer Memories directors, and the rest from other defendants.

The suit charged that the Chatsworth company misrepresented itself in a 1983 stock offering. Computer Memories, once a promising maker of computer disk drives, stopped production last year.

The deal appears to clear the way for Computer Memories to go ahead with its planned merger with Hemdale Film Corp., a Los Angeles company that produced the hit film “Platoon.”