Xerox Wins Approval of Settlement of Lawsuit Over ACS Buyout
Bloomberg reports that Xerox won final approval for the $69 million settlement of a shareholder lawsuit challenging its $6 billion takeover of Dallas-based Affiliated Computer Services Inc (ACS), the country's largest student loan processor.
ACS investors sued in Delaware Chancery Court and in state court in Texas alleging directors of the student-loan processing company wrongfully agreed to allow ex-Chairman Darwin Deason to collect more than $1 billion in the buyout. The settlement resolves both the Delaware and Texas claims.
“$69 million is a high monetary benefit” for ACS investors, Delaware Chancery Court Judge Donald Parsons Jr. said today in giving final approval to the accord. He also approved $17.2 million in legal fees for investors’ lawyers. The case had been scheduled to start trial May 10 in Wilmington.
ACS said Sept. 28 that Xerox would pay $18.60 in cash and 4.935 Xerox shares for each ACS share. According to the Bloomberg article, Lisa Weaver, a spokeswoman for Xerox, didn’t immediately return a call for comment on the settlement’s approval.
Under the agreement, according to court papers, ACS will pay $56.1 million and Deason will pay $12.8 million, some subject to insurance payments. Former ACS stockholders who file claims will share the remainder of the settlement fund after fees and expenses, according to court papers.
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