Two recent settlements of note:
(1) Diamond Foods, Inc. (NASDAQ: DMND), a packaged foods provider, has announced the preliminary settlement of the securities class action pending against the company in the N.D. of California. The case originally was filed in 2012 and relates to a scandal that involved the improper accounting of payments to walnut farmers. The 10b-5 Daily recently posted about the class certification decision in the case.
The settlement is valued at $96 million, including $11 million in cash (largely from the company's insurers) and 4.45 million shares of common stock. The company has the option "to privately place, or conduct a public offering of, the shares with the consent of the lead plaintiff and its counsel, prior to distribution of the Settlement Fund" and contribute the proceeds to the settlement in lieu of the shares.
(2) The Blackstone Group, L.P. (NYSE: BX), an investment banking company, has entered into a preliminary settlement of the securities class action pending against the company in the S.D. of New York. The case originally was filed in 2008 and relates to the company's alleged failure to properly disclose the value of certain investments as part of its initial public offering. In 2011, The 10b-5 Daily posted about the Second Circuit's reversal of the dismissal of the case.
The settlement is for $85 million. According to press reports, the case was scheduled to go to trial next month.Posted by Lyle Roberts at August 30, 2013 10:00 PM | TrackBack