Candela Corp. agreed to pay $3.85 million to settle a class-action shareholder lawsuit and an unspecified amount to settle a derivative lawsuit.
The Wayland cosmetic laser device maker said the U.S. District Court in Boston and the Superior Court for Middlesex County approved its settlement proposals in the cases, the first of which accused the company, president and CEO Gerard Puorro and former CFO F. Paul Broyer of mismanaging the company and concealing problems from shareholders,
Specifically, the suit alleged that Candela “was not able to remain competitive” and that its failure to offer a “multi-configuration/multi-application device” was causing it to lose market share. The suit also concerned exchanges between the company and local peer Palomar Medical Technologies Inc. over alleged patent infringements.
The settlement agreement in that case stipulates that Candela pay $3.85 million into a settlement fund for the benefit of the shareholders who sued. Under the terms of the derivative settlement, the company will pay attorneys’ fees and agreed to change its corporate governance structure. Candela’s insurer will fund both settlements.