The parties have reached a tentative $32.5 million settlement of several class actions filed against Baan Company N.V. (Nasdaq: BAANF) and certain of its officers and directors by stockholders who purchased the company's securities between January 28, 1997, and October 12, 1998. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. To recover under the settlement, a completed proof of claim postmarked no later than December 3, 2003, must be mailed to the claims administrator.

The actions allege that the defendants improperly recognized revenues by utilizing fraudulent accounting methods. Specifically, the actions claim that defendants (1) recognized revenue from related party transactions that should have not been recognized, (2) prematurely recognized revenue from licensing transactions, and (3) improperly recognized revenue from transactions for which Baan guaranteed payment.

Baan Company N.V. was acquired by Invensys on August 31, 2000, and its stock is no longer traded.

The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for September 30, 2003.