WILMINGTON, Del., Jan. 15, 2015 /PRNewswire/ -- The law firm of
Chimicles & Tikellis LLP and its client, Dauphin
County Employee Retirement Fund, have reached a Settlement
on behalf of Freeport-McMoRan, Inc. (NYSE: FCX) with certain
of the Company's directors and officers. The settlement,
totaling $137.5 million and subject
to approval by the Delaware Court
of Chancery, will resolve shareholder derivative actions brought
beginning in late 2012 relating to Freeport-McMoRan's acquisition
of its affiliate McMoRan Exploration and of Plains Exploration.
The Settlement provides that Defendants will cause a dividend in
the amount of $137.5 million to be
paid to Freeport-McMoRan stockholders. Not only is this one
of the largest stockholder derivative settlements, but it is also
believed to be the first to ensure the benefits of such a
settlement flow to stockholders in the form of a cash
dividend. The Settlement also requires that Freeport-McMoRan
adopt and preserve improved corporate governance practices.
In addition, the Settlement allows Plaintiffs to pursue additional
claims against Credit Suisse, which acted as a financial advisor to
Freeport-McMoRan in connection with the acquisition.
Co-lead counsel Pamela S.
Tikellis of Chimicles & Tikellis stated: "The
first-of-its-kind settlement will provide significant financial
benefits to Freeport-McMoRan and its investors to compensate for
overpayment associated with the acquisition. In addition, the
Settlement allows Plaintiffs to pursue claims against Credit Suisse
for its role in the harm against Freeport and its stockholders."
Jeff Haste, Chairman of
the Dauphin County Board of Commissioners said, "The Settlement
represents an excellent and historic victory for investors in
holding directors and officers accountable to stockholders.
I'm pleased that Dauphin County was in a position to lead that
effort."
The case is styled: In Re Freeport-McMoRan Copper & Gold
Inc. Derivative Litigation, C.A. No. 8145-VCN.
Prior to the acquisition, Freeport-McMoRan, certain of its
officers and directors and Plains Exploration each had substantial
investments in McMoRan Exploration. Plaintiffs claimed that
McMoRan Exploration was in a dire economic and operational
condition and the acquisition was a disloyal bail-out. The
suit further alleged that the price paid by Freeport-McMoRan for
McMoRan Exploration vastly exceeded the value of McMoRan
Exploration as a going concern and that certain Freeport-McMoRan
insiders benefited from the acquisition at the expense of the
Company and its public stockholders.
After the actions related to the acquisition were filed, the
parties engaged in extensive discovery through document production
and depositions. On March 12,
2014, Vice Chancellor John
Noble of the Delaware Court
of Chancery heard oral arguments on Defendants' motions to dismiss
the claims. After the hearing, the parties engaged in
settlement discussions, including several rounds of mediation
guided by the Honorable Layn R. Phillips in an effort to reach a
resolution.
Note: Institutional investors, individuals and businesses have
relied on Chimicles & Tikellis LLP for over 25 years to
litigate securities fraud, fiduciary duty, consumer and antitrust
cases. Having recovered billions of dollars on behalf of its
clients, Chimicles & Tikellis has earned a reputation as
skilled and aggressive litigators. The firm has significant
experience in prosecuting class action and derivative litigation in
state and federal courts, including the United States Supreme
Court. Chimicles & Tikellis has been recognized by SCAS 50 and
Best Law Firms as one of the leading plaintiffs' law firms.
Visit www.chimicles.com for additional information about
Chimicles & Tikellis.
Contact:
Robert Kriner
(302) 656-2500
RJK@chimicles.com
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SOURCE Chimicles & Tikellis LLP