8.11.21 – SSI – AUSTIN, Texas
Resideo Technologies (NYSE: REZI) announces that it has entered into a binding agreement in principle to settle the pending securities class action litigation arising from allegations with respect to statements and disclosures made in 2019.
The proposed settlement calls for a payment of $55 million in resolution of claims asserted against Resideo and all other defendants. Approximately $39 million is expected to be funded with proceeds from available insurance.
Resideo recorded a $16 million expense in its second quarter 2021 financial results to account for the portion of the settlement it expects to fund. Including the impact of the settlement, Resideo’s GAAP operating profit is expected to be $121 million for the second quarter 2021.
The settlement remains subject to final documentation, approval by the court and is subject to the satisfaction of customary conditions to effectiveness. A final non-appealable closure of the litigation is expected towards the end of 2021.
Resideo is a manufacturer and distributor of technology-driven products and solutions that provide comfort, security, energy efficiency and control to customers worldwide. The company has a presence in more than 150 million homes, with 15 million systems installed in homes each year. It also serves more than 110,000 installing professionals through leading distributors, including the ADI Global Distribution business.