|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the ELN 20-F filed Mar 30, 2006. (A) Shareholder
litigation and SEC investigation
During 2004, we recorded $56.0 million (2003:
$10.7 million) related to litigation provisions and costs
related to the SEC investigation and shareholder class action
lawsuit. The expense recorded in 2004 arose primarily as a
result of a $55.0 million provision made in relation to
settlement of the SEC investigation and the related shareholder
class action lawsuit.
We and certain of our former and current officers and directors
were named as defendants in a class action filed in early 2002
alleging that our financial statements were not prepared in
accordance with GAAP, and that the defendants disseminated
materially false and misleading information concerning our
business and financial results. We agreed to settle the action
in October 2004 and the settlement was formally approved by the
U.S. District Court for the Southern District of New York
in February 2005. Under the class action settlement, all claims
against us and the other named defendants were dismissed with no
admission or finding of wrongdoing on the part of any defendant.
The principal terms of the settlement provide for an aggregate
cash payment to class members of $75.0 million, out of
which the court awarded attorneys’ fees to plaintiffs’
counsel, and $35.0 million was paid by our insurance
carrier.
We were also the subject of an investigation by the SEC’s
Division of Enforcement regarding matters similar to those
alleged in the class action. We provisionally settled the
investigation in October 2004 and the SEC formally approved the
settlement in February 2005. The terms of the class action
settlement received final court approval in
Table of Contents
April 2005. Under the settlement agreement reached with the SEC,
we neither admitted nor denied the allegations contained in the
SEC’s civil complaint, which included allegations of
violations of certain provisions of the federal securities laws.
The settlement contains a final judgment restraining and
enjoining us from future violations of these provisions. In
addition, under the final judgment, we paid a civil penalty of
$15.0 million. In connection with the settlement, we were
not required to restate or adjust any of our historical
financial results or information.
The expense incurred in 2003 relates to legal expenses incurred
on the SEC investigation and shareholder class action lawsuit.
For additional information on litigation which we are involved
in, please refer to Note 25 to the Consolidated Financial
Statements.
|
| |||||||
