Aon Corp. (NYSE: AOC), a Chicago-based insurance holding company, has announced a preliminary settlement of the securities class action pending against the company in the N.D. of Ill. (a separate derivative action filed in state court is also included in the settlement). According to a report in the Chicago Tribune, the case was "filed after Aon announced disappointing earnings in the second quarter of 2002" and alleges that Aon had "released inaccurate information about the corporation's performance" prior to that announcement.
The settlement, which is subject to court approval, is for $7.25 million. Aon is also required to enact certain corporate governance reforms.
Quote of note: "Aon paid a relatively small amount to settle the cases and make them go away, said D. Cameron Findlay, Aon executive vice president and general counsel. 'While we thought these lawsuits were absolutely meritless, we settled for a nominal amount that reflects the nuisance value,' he said."Posted by Lyle Roberts at November 19, 2003 7:20 PM | TrackBack