FutureLink Settles Suit With Financial Firm

FutureLink Corp., an Irvine software maker, said Monday that it has settled a lawsuit filed by a financial services firm by agreeing to pay $5 million and issue warrants for 3 million shares of stock.

SmallCaps Online Group LLC, a New York investment banking firm, had sought $110 million on claims that FutureLink had failed to pay it for lining up financing for some acquisitions last year.

Under the settlement, FutureLink will issue warrants to buy 2 million shares at $20.50 a share, warrants to buy 500,000 shares at $22.50 each and warrants to buy 500,000 shares at $8.50 each. The warrants lapse on March 14, 2005.

FutureLink’s stock closed Monday at $21.44 a share, unchanged from Friday’s close.