A round-up of significant securities class action settlements in the first quarter of 2011:
(1) Credit Suisse Group (NYSE: CS), a Switzerland-based financial services company, agreed to settle the securities class action pending against the company in the S.D. of New York. The case, originally filed in April 2008, stems from allegations that Credit Suisse made materially false statements regarding its mortgage-related exposure. The settlement is for $70 million. The D&O Diary has a detailed post.
(2) Tremont Group Holdings, Inc., a New York-based investment manager that is a subsidiary of Massachusetts Mutual Life Insurance Co., agreed to settle the securities litigation pending against the company in the S.D. of New York. The cases, originally filed starting in December 2008, stem from allegations that Tremont made material misstatements regarding the due diligence that was conducted on investment vehicles run by Bernard L. Madoff, to which Tremont transferred a substantial portion of its investment capital.
The partial settlement, which is for $100 million, resolves class action and derivative lawsuits. Additional money from Tremont will be added to the settlement fund following the wind-down of the company’s operations. Class members also may receive a portion of any recovery Tremont obtains from claims against third parties. Reuters has an article on the settlement.
(3) Satyam Computer Services Ltd. (NYSE: SAY), an India-based global business and information technology services company, now doing business as Mahindra Satyam, agreed to settle the securities class action pending against the company in the S.D. of New York. The case, originally filed in January 2009, stems from allegations that Satyam and its two top executives issued materially false financial statements by, among other things, inflating the company’s revenue and understating its debt.
The settlement, which is for $125 million, resolves only the claims against Satyam and does not include claims against other defendants in the suit. Satyam also agreed to pay class members 25% of any net recovery that the company may in the future obtain based on claims against PricewaterhouseCoopers LLP or its subsidiaries. Bloomberg has an article on the settlement.