Press release from Business Wire
Pension Funds and Shareholders' Counsel Announce Settlement of News Corporation Derivative Litigation: An Announcement by Bernstein Litowitz Berger & Grossmann and Grant & Eisenhofer
Monday, April 22, 2013
Pension Funds and Shareholders' Counsel Announce Settlement of News Corporation Derivative Litigation: An Announcement by Bernstein Litowitz Berger & Grossmann and Grant & Eisenhofer08:21 EDT Monday, April 22, 2013
NEW YORK (Business Wire) -- News Corporation shareholders Amalgamated Bank, as Trustee to the LongView Funds (“Amalgamated Bank”), Central Laborers Pension Fund and the City of New Orleans Employees' Retirement System (“NOMERS”), together with co-lead derivative counsel, Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”) and Grant & Eisenhofer P.A. (“G&E”) announced today they have reached agreement with News Corporation and the individual defendants, certain current or former directors of the Company, to resolve all claims alleged in the derivative lawsuit captioned In re News Corporation Shareholder Derivative Litigation (6285-VCN, Delaware Chancery Court) (the “Action”).
Under the terms of the settlement, News Corporation will recover $139 million in insurance proceeds. In addition, News Corporation will build on the corporate governance enhancements that the Company, under the direction of its Board, has taken over the last year to strengthen its global compliance structure and corporate governance. Among other things, News Corporation is implementing additional meaningful measures that the Company and the Plaintiffs crafted through their cooperative efforts. The full terms of the settlement, which will be subject to court approval in Delaware, are available at www.newscorpderivativesettlement.com/pdf/mou.pdf.
NOMERS Chairman, Dr. Edgar Chase said, “We are proud of the meaningful role that we and our counsel played in the Company's continuing efforts to strengthen its governance on behalf of our beneficiaries in achieving this recovery and further improving corporate governance practices at News Corporation.”
Noel Beasley, Chairman of Amalgamated Bank, stated, “We are pleased that the company has committed to additional enhancements to its governance that we hope will continue to protect and enhance shareholder value going forward.”
Co-Lead Counsel for Plaintiffs, Mark Lebovitch of BLB&G and Jay Eisenhofer of G&E, jointly stated, “We commend the significant compliance improvements that News Corporation's Board has implemented, and agreed to implement, and applaud News Corporation for working with Plaintiffs to structure and implement additional valuable governance and compliance reforms. We also are very pleased that, as a result of the settlement, all of the governance and compliance improvements set forth in the settlement agreement will remain in place at the Company until at least the end of 2016.”
Since its founding in 1983, BLB&G has obtained over $25 billion in recoveries for investors and achieved precedent-setting corporate governance reforms on behalf of its institutional investor clients. Regularly entrusted by its clients and appointed as lead counsel by the courts in major securities class actions, BLB&G has litigated numerous seminal cases establishing precedents which have increased market transparency, held wrongdoers accountable, and changed corporate business practices in groundbreaking ways. Due to its impressive record of achievements, industry observers have recognized the firm for its legal excellence ("consistently achieving the highest returns for investors" – The National Law Journal; "the best advice in the field" – Chambers USA; "one of the best bar none...impressive achievements and excellent reputation" – Benchmark Litigation). BLB&G has offices in New York, California, Louisiana, and Illinois. Visit http://www.blbglaw.com to learn more.
With offices in New York, Delaware, Washington, D.C. and Chicago, Grant & Eisenhofer P.A. represents institutional investors and shareholders across the globe in securities class actions, corporate governance actions and derivative litigation. Not including its multibillion dollar recoveries under the False Claims Act, the firm has recovered more than $13 billion for shareholders, in the last five years and has consistently been cited by RiskMetrics for securing among the highest average investor recovery in securities class actions. Grant & Eisenhofer has been named one of the country's top plaintiffs' law firms by The National Law Journal for the past six years. The firm also has an expansive consumer protection practice group. For more about Grant & Eisenhofer, visit www.gelaw.com.
Alexander Coxe, 212-554-1423
Elise Martin, 302-622-7004
Allan Ripp, 212-262-7477