NEWPORT NEWS -- Flight International Group Inc. has reached a $5.25 million settlement with stockholders stemming from lawsuits that charged the firm released inaccurate financial statements in 1988 and 1989.
The settlement, which must still be approved by a federal judge, requires the aviation firm to provide 340,000 shares of common stock to people who bought Flight International stock between June 21, 1988 and Sept. 29, 1989, the firm announced last week.
Estimates of the current worth of the 340,000 shares range from $700,000 to $1 million. The cash balance is expected to come from six former employees, including the company's founder, Douglas Matthews.
Also paying will be Deloitte & Touche, Flight International's accounting firm, said Flight International attorney Howard Schiffman.
Flight International had made a name for itself by providing mock combat services for the Air Force and Navy. Its Lear jets were designed to mimic the actions of enemy aircraft.
The settlement must be approved by U.S. District Judge Jack Camp in Atlanta, where Flight International shareholders filed suit. Approval is expected to be granted within 120 days, Flight International said.
Flight International's initial 1989 statement reported net earnings of $3 million. A re-audit released in March showed the company lost $3.8 million.