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Local Tech Wire

RALEIGH, N.C. – Linux software developer and services provider said Tuesday that it has set aside $8.8 million to settle a class action law suit.

The suit was filed on behalf of shareholders in a dispute over a restatement of financial results in July 2004.

Red Hat said in a statement that it had ‘reached an agreement in principle” to settle the case that had been filed in federal district court in Eastern North Carolina.

“The class action settlement is subject to the completion of a final, written settlement agreement and court approval,” Red Hat said.

The company plans to take a one-time charge against its third quarter results. The quarter ended Nov. 30.

Red Hat will announce its quarterly earnings on Dec. 22.