BISYS Group, Inc. has reached an agreement to settle the securities class action lawsuit entitled ‘In re BISYS Securities Litigation’ and a related securities action pending against it.
The proposed settlement involves claims relating to the Company’s financial disclosures, including allegations concerning its financial restatements filed in 2005 and 2006, and is conditioned upon successful negotiation of definitive documentation and approval by the Court.
Under the proposed settlement, BISYS will pay an aggregate of USD 66.5 million in cash into an escrow account within 10 days after preliminary Court approval. The settlement, which includes no admission of wrongdoing by BISYS or any of the individual defendants, will be funded through a combination of cash on hand, BISYS’s existing credit facility and available insurance proceeds under its USD 25 million directors and officers liability policy. BISYS is currently in discussions with its insurance carriers to determine the final amount of available insurance proceeds.
“We are pleased to have reached this settlement and firmly believe that it is in the best interest of the Company and its shareholders,” says Robert Casale, the Chairman, Interim CEO and President of BISYS. “We see this as a significant step forward in putting the Company’s financial reporting issues from the past behind us and allowing the Company to focus on growing its business and pursuing opportunities to maximize shareholder value.”