Xerox Pays Up $69M. In Shareholder Lawsuit

2012-12-20T08:54:00-05:00

Xerox Pays Up $69M. In Shareholder Lawsuit Xerox has agreed to write a $69 million cheque to make lawyers from several of its shareholders go away. The lawsuits were over the company's acquisition of Dallas-based Affiliated Computer Services last year During the $6 billion acquisition there were some additional, exclusive payments to ACS founder Darwin Deason totaling hundreds of millions of dollars. Deason got a billion in stock and cash from Xerox, including a $300 million premium for his Class B shares of ACS. ACS had defended the premium, saying it was "consistent with other strategic acquisitions of similar scope and size." However several shareholder lawsuits were filed in Dallas and Delaware, alleging that Deason's deal was overly generous compared with what other ACS stockholders stood to receive. In a Securities and Exchange Commission filing Wednesday, Xerox said it "did not admit to any wrongdoing." Under the terms of the deal, Deason will pay $12.8 million of the settlement amount back

Tonernews.com, December 20, 2012. USA

This topic has 0 replies, 1 voice, and was last updated 11 years, 2 months ago by Anonymous.

Viewing 1 post (of 1 total)

Author

Posts
#5781

Anonymous
Inactive

Xerox Pays Up $69M. In Shareholder Lawsuit 
Xerox has agreed to write a $69 million cheque to make lawyers from several of its shareholders go away. 
 
The lawsuits were over the company’s acquisition of Dallas-based Affiliated Computer Services last year During the $6 billion acquisition there were some additional, exclusive payments to ACS founder Darwin Deason totaling hundreds of millions of dollars. 
 
Deason got a billion in stock and cash from Xerox, including a $300 million premium for his Class B shares of ACS. ACS had defended the premium, saying it was “consistent with other strategic acquisitions of similar scope and size.” 
 
However several shareholder lawsuits were filed in Dallas and Delaware, alleging that Deason’s deal was overly generous compared with what other ACS stockholders stood to receive. In a Securities and Exchange Commission filing Wednesday, Xerox said it “did not admit to any wrongdoing.” 
 
Under the terms of the deal, Deason will pay $12.8 million of the settlement amount back
Author

December 20, 2012 at 8:54 AM

Viewing 1 post (of 1 total)

You must be logged in to reply to this topic.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty, or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content on our site.