MTI Technology Agrees to Settle Suits for $900,000

MTI Technology Corp., the Anaheim-based maker of data storage products, said Thursday that it has agreed to pay $900,000 to settle a series of federal class-action lawsuits.

The settlement, which a U.S. District Court judge in Santa Ana has tentatively approved, will end all claims against the company and certain officers detailed in complaints filed Aug. 26 and Oct. 30, 1998. The two suits were later consolidated into one federal court complaint.

Shareholders accused MTI of misrepresenting the negative impact of European sales on first-quarter earnings and failing to notify investors about delays in one of its product lines. Before announcing the negative news, three MTI senior officers sold all their shares for a profit of $2 million, the suits contended.

On Thursday, the company’s stock price fell 17 cents, closing at $9.08 a share on the Nasdaq market.