TORONTO -- Celestica has reached a $30 million settlement with shareholders over alleged securities fraud.

The suit, filed in a New York US District Court, alleges Celestica, former chief executive Stephen Delaney and former chief financial officer Anthony Puppi knowingly misrepresented the company's financial health. The suit claims the officers and company inflated the company's operating earnings and revenue, primarily by understating the real costs of a restructuring that took place in 2005.

The negotiated settlement must be approved by the court.

The suit was filed on behalf of investors who bought shares in the company between January 2005 and January 2007. On Jan. 31, 2007, shares in the company tanked following a discouraging outlook by current chief executive Craig Muhlhauser.