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http://www.marketwatch.com/story/staples-announces-settlement-of-stock-option-derivative-litigation-2010-04-16?reflink=MW_news_stmp
STAPLES WANTS SETTLEMENT OVER STOCK
OPTIONS DERIVATIVES
FRAMINGHAM,
Mass., Apr , 2010 — Staples, Inc. announced today that it has reached a
global settlement, subject to court approval, of the derivative
litigation relating to the company’s historical stock option granting
practices. The agreement involves no admission of wrongdoing on the part
of Staples or the individual defendants in connection with the
allegations and would eliminate the burden, expense, and distraction of
litigation that has been pending for more than three years.The
settlement is subject to notice to shareholders and to final approval by
the Court of Chancery of the State of Delaware.As further described in
the notice that will be distributed to shareholders, the settlement is
premised upon, among other things, the receipt by Staples of $7.25
million in insurance proceeds; the monetary benefit returned to Staples
as a result of the corrective adjustments made in 2006 to certain stock
option awards; and the adoption of certain additional measures governing
the process by which stock options are awarded as compensation at
Staples. In conjunction with the settlement, plaintiffs’ counsel will
apply to the Court for an order requiring the payment by Staples of up
to $2.5 million in attorneys’ fees, costs, and expenses, which
application Staples has agreed not to oppose.If approved, the settlement
will resolve all litigation pending against the company, as well as its
former and current officers and directors, relating to Staples’
historical stock option granting practices.
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