HCC Insurance Holdings Inc., headquartered in Houston, announced it has reached a settlement, subject to court approval, with the plaintiffs in class action litigation relating to the company’s historic stock option granting practices.
The company previously announced on Jan. 9, 2008, that it had reached a settlement in the shareholder derivative litigation regarding the stock option matter. With the current announcement, all private securities litigation pending against the company regarding the stock option matter has been resolved.
The terms of the settlement, which includes no admission of liability or wrongdoing by HCC or any other defendants, provide for a full and complete release of all claims in the litigation and payment of $10 million to be paid into a settlement fund, pending approval by the Court of a plan of distribution.
The $10 million will be paid by the company’s directors’ and officers’ liability insurers, and will not have a material effect on HCC’s financial results. Once approved, the settlement will resolve all class action litigation pending against the company, as well as its former and current directors and officers.
Source: HCC Insurance Holdings Inc., www.hcc.com
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