A federal judge in Trenton has approved a Pennington company’s settlement of $3 million in cash and about $1.69 million in company stock in a suit by shareholders who said they were misled about a project to generate electricity from ocean waves.
Ocean Power Technologies was named in four separate shareholder suits in 2014 after it fired its chief executive and formed a special committee to examine company statements about the project. The controversy stems from the company’s partnership with the Lockheed Martin Corp. to place 28 buoys off the southern coast of Australia to harness wave energy. Plaintiffs in the consolidated suits said Ocean Power Technologies misstated the amount and timing of payments Australia’s government would make to the project. The alleged misstatements were made shortly before an offering of 3.8 million shares by Ocean Power Technologies on April 4, 2014, that yielded $10.8 million in revenue.
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