Akamai Settles Lawsuit With ex-Employee
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Akamai Technologies will pay a former employee $3.55 million to settle a lawsuit that alleged breach of contract, according to a filing with the Securities and Exchange Commission (SEC) released on Thursday.
The action was filed against the Cambridge, Mass., content delivery specialist in June 2001 and settled last month. The plaintiff, nor the specifics of the claim, was identified.
An Akamai spokesman was not immediately available for comment.
According to the filing with the SEC, the company's insurance carriers will reimburse $1.75 million of the outlay.
To account for the transaction, Akamai has recorded the net amount of $1.8 million as general and administrative expenses, increased other current assets by $1.75 million and increased accrued expenses by $3.55 million.
Recently, Akamai posted fourth quarter net loss that was narrower than analysts had expected. The company said sales were driven by its EdgeWuite offering, which speeds delivery of rich media content.
The company has endured several rounds of layoffs due to the poor economy in the last two years.