Fidelity Management & Research Co. has agreed to pay $10 million to settle a class-action suit brought by a group of Micron Technology Inc. shareholders over remarks made by the then-manager of Fidelity Investments' Magellan Fund.
In an interview with U.S. News & World Report in the fall of 1995, Jeffrey Vinik made positive remarks about Micron, a semiconductor manufacturer in Boise, Idaho.Later filings with the Securities and exchange Commission showed that at about the same time, Vinik was selling most of the Micron stock held by Magellan.
Fidelity announced the settlement of the suit Tuesday, denying there was anything wrong with Vinik's remarks. Fidelity Management & Research, the parent company of Fidelity Investments, will pay the $10 million, so the settlement will not affect any Fidelity fund or shareholder.
Vinik left Fidelity in May 1996.