Titan Receives Judge’s OK to Settle Investor Suit

Titan Corp. won the approval of a Delaware judge Wednesday to settle a lawsuit alleging corporate mismanagement and failure to get the best price in a $1.97-billion buyout by L-3 Communications Holdings Inc.

Titan investor Robert Ridgway sued the San Diego-based defense contractor in July 2004 on behalf of all shareholders, alleging an initial $22.76-a-share offer was inadequate. Titan eventually negotiated a $23.10-a-share price and the transaction was completed in July.

“This is a very good result for the shareholders,” said Judge William B. Chandler III in approving the settlement in Delaware Chancery Court. The judge also awarded the plaintiff’s lawyers $5.9 million in fees and expenses.

Titan is the largest provider of civilian translators to the Army and the 12th-largest supplier of secure computer networks.

In the lawsuit, Ridgway alleged that Titan executives failed to prevent the company from violating bribery statues, preparing false tax returns and abusing prisoners at Abu Ghraib prison in Iraq.

In March, after a U.S. Justice Department investigation into whether company consultants bribed foreign officials, Titan pleaded guilty and paid a $28.5-million fine.

Lockheed Martin Corp. dropped a $1.66-billion, $20-a-share bid for Titan in June 2004, when the criminal investigation hadn’t been resolved.