Cisco Shareholder Lawsuit Is Settled

Cisco Systems Inc. settled a class-action lawsuit brought by investors in 2001 by agreeing to a $91.8-million payment that will be made by insurers.

The payment won’t affect Cisco’s results from operations or its financial position, the San Jose company said in a statement Friday. Cisco said its insurers had agreed to make the settlement payment.

Lawyers from Lerach Coughlin Stoia Gellar Rudman & Robbins contended in the suit that Cisco and some executives had made misleading statements that were relied upon by buyers of its stock.

Spencer Burkholz, the lead plaintiffs’ lawyer, said the effects of market and industry conditions on Cisco’s stock in 2000 and 2001 reduced potential damages.

Mark Chandler, Cisco’s general counsel, said, “We believe this settlement is in the best interest of Cisco and its shareholders.”