STAPLES WANTS SETTLEMENT OVER STOCK OPTIONS DERIVATIVES

[Anonymous]

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.

[Author]

April 26, 2010 at 10:53 AM