Carbonite Makes $27.5 Million Deal to End Securities Fraud Suit

Carbonite Inc. and a class of shareholders seek a judge’s approval for a $27.5 million settlement of claims that the company misled investors about its faulty data recovery software.

The proposed deal would put an end to four years of “vigorous and contentious litigation,” which included the 2020 dismissal and subsequent revival of the suit the next year, according to the motion for preliminary approval filed Wednesday in US District Court for the District of Massachusetts.

Institutional investor Construction Industry and Laborers’ Joint Pension Trust was appointed to lead the class last July, pursuing allegations that Carbonite falsely represented to ...