Del names Park CEO, settles lawsuits

Del Global Technologies has named Samuel Park as president and CEO. Park, who signed a three-year employment agreement, has been serving as acting president and CEO since February 26. He was also elected to the Valhalla, NY-based firm's board of directors.

Prior to joining Del, Park was president and founder of Hibernian Consulting Group. Park replaces former president, CEO, and chairman Leonard Trugman, who resigned in February.

In other news, the Del has reached an agreement in principle to settle the consolidated securities class-action lawsuits pending against it and other named defendants in the U.S. District Court for the Southern District of New York. The litigation was initiated in November 2000 following discovery of accounting irregularities at the firm.

Under the proposed agreement (which must still be approved by the court) Del will contribute $2 million to the settlement in the form of a subordinated note due in five years with interest at 6% per annum. The company will also contribute 2.5 million shares of Del common stock and warrants to purchase one million shares of common stock exercisable at $2 per share. The plaintiffs will also receive a $2 million cash payment, not contributed by Del.

By staff writers
July 27, 2001

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