Staples, Inc. (ticker: SPLS, exchange: NASDAQ Global Market (.O))
News Release -
Staples Announces Settlement of Stock Option Derivative Litigation
FRAMINGHAM, Mass., Apr 16, 2010 (BUSINESS WIRE) --Staples, Inc. (Nasdaq: SPLS) announced today that it has reached a
global settlement, subject to court approval, of the derivative
litigation relating to the company's historical stock option granting
practices. The agreement involves no admission of wrongdoing on the part
of Staples or the individual defendants in connection with the
allegations and would eliminate the burden, expense, and distraction of
litigation that has been pending for more than three years.
The settlement is subject to notice to shareholders and to final
approval by the Court of Chancery of the State of Delaware.
As further described in the notice that will be distributed to
shareholders, the settlement is premised upon, among other things, the
receipt by Staples of $7.25 million in insurance proceeds; the monetary
benefit returned to Staples as a result of the corrective adjustments
made in 2006 to certain stock option awards; and the adoption of certain
additional measures governing the process by which stock options are
awarded as compensation at Staples. In conjunction with the settlement,
plaintiffs' counsel will apply to the Court for an order requiring the
payment by Staples of up to $2.5 million in attorneys' fees, costs, and
expenses, which application Staples has agreed not to oppose.
If approved, the settlement will resolve all litigation pending against
the company, as well as its former and current officers and directors,
relating to Staples' historical stock option granting practices.
Staples, the world's largest office products company, is committed to
making it easy for customers to buy a wide range of office products and
services. Our broad selection of office supplies, electronics,
technology and office furniture as well as business services, including
computer repair and copying and printing, helps our customers run their
offices efficiently. With 2009 sales of $24 billion and 91,000
associates worldwide, Staples operates in 25 countries throughout North
and South America, Europe, Asia and Australia serving businesses of all
sizes and consumers. Staples invented the office superstore concept in
1986 and today ranks second worldwide in e-commerce sales. The company
is headquartered outside Boston. More information about Staples is
available at www.staples.com/media.
SOURCE: Staples, Inc.
Paul Capelli/Owen Davis