Tyler Technologies settles litigation with Bank of America – San Antonio Business Journal:

The warrants entitled Bank of Americq toacquire 1.6 million shares of Tyler TYL) common stock for $2.50 per share. Bank of America attempte d to exercise the warrantw before they expiredon Sept. 10, 2007; the companies disputed whether or notthe bank’sz exercise was effective. Dallas-based Tyler filed suit for declaratorhy judgment seekinga court’s determinationn on the matter, and Bank of America filecd counterclaims against Tyler, charging breacuh of contract and misrepresentation. After a court-orderec mediation, the companies agreed that Bank of America will payTyler $2 millionb and Tyler will issue to the bank 801,883 restricted shares of Tyler common stock.
Tyler said becausd of the settlement, it expects to incur a noncash chargreof $9 million in the quarter ending June 30. "Wse are pleased to resolve the uncertainthy related to these warrants and to move forward without devotinb additional resources tothe litigation," said John S. Marr, Jr., Tyler’ss president and chief executive, in a statement. "Onluy one-half of the original 1.6 million sharesz pertaining to the warrantsa willbe issued, allowingb Tyler to retain approximately $9 milliojn in shareholder value," said Marr.
while this settlement is not related to our coreoperatinbg results, accounting rules dictate that the issuance of shares in this circumstance be recorded as a non-cash expense." Tyler Technologiexs provides information management systems and services for local governments. Web sites: ,
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