Leucadia Enters Shareholder Class Action Settlement Agreement
November 06 2014 - 8:11AM
Business Wire
Leucadia National Corporation (NYSE:LUK) announced today that it
agreed to settle shareholder class actions relating to the March 1,
2013 transaction through which Jefferies Group LLC became a wholly
owned subsidiary of Leucadia, creating a strategic combination with
over $9 billion in shareholders’ equity.
Seven class-action lawsuits had been filed in New York and
Delaware on behalf of a class consisting of Jefferies Group’s
stockholders concerning the transaction. The class actions named as
defendants Leucadia, Jefferies Group, certain members of the board
of directors of Jefferies Group, certain members of Leucadia’s
board of directors and, in certain of the actions, certain
merger-related subsidiaries.
On October 31, 2014, we and the remaining defendants in the
Delaware litigation entered into a settlement agreement with the
plaintiffs in the Delaware litigation. The terms of that agreement,
which are subject to court approval, provide for an aggregate
payment of $70 million to certain former stockholders of Jefferies
Group, other than the defendants and certain of their affiliates,
along with attorneys’ fees to be determined and approved by the
court. The agreement further provides that the settlement will be
paid, at Leucadia’s option, in either cash or Leucadia common
shares. If approved by the court, the settlement will resolve all
of the class-action claims in Delaware, and release the claims
brought in New York.
While we and the other defendants continue to deny each of the
plaintiffs’ claims and deny any liability, we agreed to the
settlement solely to resolve the disputes, to avoid the costs and
risks of further litigation and to avoid further distractions to
our management.
Leucadia National CorporationLaura Ulbrandt, 212-460-1977
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