Monster Settles Class Action
Quite an eventful afternoon for Monster Worldwide (MNST).
For starters, the company announced that it has reached a tentative settlement of a securities class action connected with the its previous stock option-granting practices. Defendants will pay $47.5 million; Monster’s share net of insurance and a contribution from another defendant will be $25 million.
Monster also said a state court has granted approval of a previously announced preliminary settlement of related securities derivative lawsuits. The company will receive $10 million “from various individuals.” Also, the Class B shares held by former chairman and CEO Andrew McKelvey will be converted to ordinary common stock, restricted stock units will be canceled and the exercise price of certain options will be increased.