|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.