Qualcomm Settles Employee Stock Lawsuit

Qualcomm has agreed to an $8.9-million settlement in a lawsuit filed by former employees of an infrastructure division that was sold before they could use their stock options, the company announced. The settlement is open to more than 1,000 employees of the division, which was sold to Sweden’s Ericsson last year as part of an agreement to end a patent dispute between the two telecommunication companies. San Diego-based Qualcomm, while agreeing to resolve the lawsuit, will pay nothing toward the settlement, with all payments to be made by third parties. The affected workers have until April 17 to opt out of the settlement. A final approval hearing is scheduled for April 28. Qualcomm workers filed the class-action suit in May 1999, claiming that the switch to Ericsson would deprive them of millions of dollars in stock options that were not vested--or qualified for exercise--by the sale date. Shares closed up $3.38 at $136.25 on Nasdaq.