================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K


                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                     the Securities and Exchange Act of 1934


                Date of Report (Date of Earliest Event Reported):
                                  May 24, 1999



                          COYOTE NETWORK SYSTEMS, INC.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)


         Delaware                         1-5486                 36-2448698
-------------------------------   ---------------------      ---------------
(State or other jurisdiction of   (Commission File Number)     (IRS Employer
         incorporation)                                      Identification No.)



                             4360 Park Terrace Drive
                           Westlake Village, CA 91361
--------------------------------------------------------------------------------
                     Address of principal executive offices


                                 (818) 735-7600
--------------------------------------------------------------------------------
                         Registrant's Telephone Number,
                               Including area code






================================================================================


<PAGE>

Item 5.  Other Events

At a hearing on May 24, 1999,  the district  court granted final approval to the
settlement of the stockholder  class action  litigation  against the Company and
certain of its officers and directors. The settlement consisted of $8,000,000 in
cash,  all of which will be provided by the  Company's  insurance  carriers  and
three-year  warrants to purchase up to  2,225,000  shares of common stock at (i)
$9.00 per share  during the first year,  (ii) $10.00 per share during the second
year and (iii) $11.00 per share during the last year prior to expiration.

Certain charges with respect to the issuance of warrants were fully reserved for
in the Company's financial statements for the fiscal year ended March 31, 1998.


Item 7.  Financial Statements and Exhibits

         (c)      Exhibits

                  4.1      Form of Warrant Agreement




<PAGE>


                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.


Dated:        July 2, 1999                COYOTE NETWORK SYSTEMS, INC.


                                    By:   /s/ Brian A. Robson
                                          -------------------------------------
                                          Brian A. Robson
                                          Executive Vice President,
                                          Chief Financial Officer and Secretary




<PAGE>
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{"company-data": {"conformed-name": "COYOTE NETWORK SYSTEMS INC", "cik": "0000057201", "assigned-sic": "3661", "irs-number": "362448698", "state-of-incorporation": "DE", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-05486", "film-number": "99659188"}, "business-address": {"street1": "4360 PARK TERRACE DRIVE", "city": "WESTLAKE VILLAGE", "state": "CA", "zip": "91361", "phone": "8187357600"}, "mail-address": {"street1": "4360 PARK TERRACE DRIVE", "city": "WESTLAKE VILLAGE", "state": "CA", "zip": "91361"}, "former-company": [{"former-conformed-name": "DIANA CORP", "date-changed": "19920703"}, {"former-conformed-name": "FH INDUSTRIES CORP", "date-changed": "19850814"}, {"former-conformed-name": "SCOT LAD FOODS INC", "date-changed": "19841202"}]}
================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                     the Securities and Exchange Act of 1934

                Date of Report (Date of Earliest Event Reported):
                                  May 24, 1999

                          COYOTE NETWORK SYSTEMS, INC.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)

         Delaware                         1-5486                 36-2448698
-------------------------------   ---------------------      ---------------
(State or other jurisdiction of   (Commission File Number)     (IRS Employer
         incorporation)                                      Identification No.)

                             4360 Park Terrace Drive
                           Westlake Village, CA 91361
--------------------------------------------------------------------------------
                     Address of principal executive offices

                                 (818) 735-7600
--------------------------------------------------------------------------------
                         Registrant's Telephone Number,
                               Including area code

================================================================================
Item 5.  Other Events

At a hearing on May 24, 1999,  the district  court granted final approval to the
settlement of the stockholder  class action  litigation  against the Company and
certain of its officers and directors. The settlement consisted of $8,000,000 in
cash,  all of which will be provided by the  Company's  insurance  carriers  and
three-year  warrants to purchase up to  2,225,000  shares of common stock at (i)
$9.00 per share  during the first year,  (ii) $10.00 per share during the second
year and (iii) $11.00 per share during the last year prior to expiration.

Certain charges with respect to the issuance of warrants were fully reserved for
in the Company's financial statements for the fiscal year ended March 31, 1998.

Item 7.  Financial Statements and Exhibits

         (c)      Exhibits

                  4.1      Form of Warrant Agreement
SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Dated:        July 2, 1999                COYOTE NETWORK SYSTEMS, INC.

                                    By:   /s/ Brian A. Robson
                                          -------------------------------------
                                          Brian A. Robson
                                          Executive Vice President,
                                          Chief Financial Officer and Secretary