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A $29.5 million settlement for investors of electronics maker Plantronics Inc. has officially cleared its final hurdle. On Monday, U.S. District Judge Jon S. Tigar granted final approval, describing the deal as “fair, reasonable, and adequate” for shareholders who claimed the company’s leadership propped up revenues through a secretive “channel-stuffing” scheme—a tactic that later triggered a dramatic stock price collapse.

The Alleged Scheme and Market Fallout

The class period spans from Aug. 7, 2018, when Plantronics first reported revenues tied to the undisclosed practice, through Nov. 9, 2019, when the company acknowledged the fallout. Once the truth surfaced, Plantronics stock plummeted nearly 37%, sinking from more than $39 per share to about $25.

Investors alleged that Plantronics inflated its short-term numbers by shoving excess inventory onto distribution partners—effectively “borrowing sales” from future quarters. Internally, the strategy was often dubbed “channel stuffing” or “hockey stick” sales.

Settlement Versus Trial Risks

Though investors estimated potential damages could have reached $248 million at trial, their lawyers warned the figure might have been slashed or even wiped out had the court narrowed the class period. In that scenario, recovery would have been capped at around $112.9 million.

The $29.5 million deal, secured after four years of litigation and two mediation sessions, was hailed by lead plaintiffs Ilya Trubnikov and the Roofers’ Pension Fund as an “excellent result” given the risks of continued litigation.

Attorneys and Fees

Judge Tigar approved $6.49 million in attorney fees—22% of the total settlement fund—for lawyers at Hagens Berman Sobol Shapiro LLP and Bernstein Litowitz Berger & Grossmann LLP, alongside more than $593,000 in litigation expenses.

The plaintiffs were represented by Steve W. Berman, Sean R. Matt, Reed R. Kathrein, Lucas E. Gilmore, John Rizio-Hamilton, Alexander M. Noble, and Jonathan D. Uslaner.

Plantronics and its executives were represented by Susan S. Muck, Kevin P. Muck, Peter J. Kolovos, and Sonia Sujanani of WilmerHale.