Leap Wireless to pay $13.8 million settlement in lawsuit over accounting errors

Leap Wireless settles lawsuit for $13.8 million

SAN DIEGO — Leap Wireless International Inc. said Friday it will pay $13.8 million to settle a class-action lawsuit in Southern California over past accounting errors.

The company, which provides prepaid wireless service, said it has not admitted any wrongdoing and that it expects its insurance will cover the settlement.

The suit was brought in 2007 by Leap Wireless shareholders upset over a drop in the company’s stock price following its restatement of revenue. The company had to revise its reported sales for 2004 though the first half of 2007 because of accounting mistakes.

The company’s stock was down 78 cents, or 5.3 percent, to $14.01 in midday trading Friday.