Houston-based HCC Insurance Holdings, Inc. reported that it has reached a settlement with the U.S. Securities and Exchange Commission over its stock option granting practices.
HCC said it consented to a permanent injunction against future violations of the reporting, books and records, and internal controls provisions of the federal securities laws.
The company said it neither admitted nor denied the allegations contained in the SEC’s complaint.
The settlement resolves the previously disclosed SEC investigation into the company’s historical stock option granting practices. The SEC made no allegations of fraud against the company and the company was not required to pay any civil penalty, fine, or money damages as part of the settlement.
On July 17, 2008, the settlement of a class action litigation relating to HCC’s historic stock option granting practices was approved in federal court and a final judgment entered.
“We are very pleased that we have resolved the SEC investigation. Our internal investigation, self-reporting and complete cooperation with the SEC greatly assisted in the final resolution of this matter,” HCC Chief Executive Officer Frank J. Bramanti said.
“The SEC settlement, together with the federal court’s recent final order disposing of the class action litigation, completely and finally resolves the company’s stock option issue,” Bramanti said.
HCC is an international specialty insurance group with offices across the U.S. and in Belgium, Bermuda, Ireland, Spain and the United Kingdom.
Source: HCC Insurance Holdings, Inc.
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