The Recycler
  • Ambiente 2025 Masthead
  • G&G Masthead August 2024
  • Katun Masthead Nov 2024
  • Biuromax Masthead web banner March 2024

Xerox shareholder class action deal rejected

September 17, 2019

In 2018 as the Fuji-Xerox deal went bad for the board of directors, after settlements were made and a reorganisation was started and four new board members were appointed, the proposed settlement for the shareholders in their class action lawsuit, has been rejected.

As Reuters reports, Justice Ostrager has refused to approve the deal that had been negotiated by the shareholder’s lawyers. The article said that in the judge’s view, the “plaintiffs’ lawyers had essentially allowed Deason and Icahn, who owned just 15 percent of Xerox shares, to seize control of the company with no consideration for shareholders – but with a $7.5 million (€6.8 million) fee deal for themselves.”

Justice Ostrager had approved an injunction in April 2018 to halt the Fuji-Xerox merger but consequently said that “if he had approved the settlement, Xerox directors would be released from liability for their role in approving the tainted Fuji deal and then walking away from it.”

Reuters reports that at the 6 September hearing, the plaintiff’s lawyer contested the judges claim of rendering control of the company to Icahn and Deason, explaining that the proposed settlement did not need Xerox to abandon the deal, neither did it give control on the board to Icahn and Deason. The lawyers argued that only after the shareholder vote and the resignation of two board members did Icahn and Deason get the necessary backing of the board.

Reuters added that “assuming that neither Xerox nor plaintiffs’ lawyers in the rejected class action do not appeal Justice Ostrager’s ruling, the decision means Xerox board members are not released from liability so the derivative suit remains alive. Korsinsky and Kupka said the goal is to win compensation for shareholders who received no consideration when Deason and Icahn effectively took control of the company.”

Categories : Around the Industry

Tags : Class Action Fuji Xerox Lawsuit Xerox

  • TN Core Nov Web advert
  • IR Italiana Web ad January 2021
  • G&G web advert October 2024
  • Biuromax Nov 2024 Web Ad
  • Apex Web ad Nov 2024
  • Cartridge Web Nov Web Banner
  • Ink Tank No Web advert
  • GM Technology Nov Web Ad
  • Static Control June 2022 Big & Bold Ad
  • Mito Web banner June 2024
  • ITP Web ad January 2021
  • Zhono Web ad March 2024
  • CET Web ad December 2023
  • HYB Web banner Jan 2024
  • denner UK Web Banner Jul 2024
  • Denner Feb 2024 Web Ad
  • PCL Nov Web advert
  • Denner Feb 2024 Web Ad
  • HYB Web banner Jan 2024
  • Zhono Web ad March 2024
  • CET Web ad December 2023
  • denner UK Web Banner Jul 2024
  • ITP Web ad January 2021
  • Mito Web banner June 2024
  • PCL Nov Web advert
  • denner UK Web Banner Jul 2024
  • Denner Feb 2024 Web Ad
  • Zhono Web ad March 2024
  • CET Web ad December 2023
  • PCL Nov Web advert
  • HYB Web banner Jan 2024
  • Mito Web banner June 2024
  • ITP Web ad January 2021

The Recycler, Wittas House, Two Rivers, Station Lane, Witney, OX28 4BH, United Kingdom | Tel: +44 (0) 1993 899800 | Fax : +44 (0) 1993 226899
©2006-2023 The Recycler - Terms & Conditions - Privacy Policy including cookie use

Web design Dorset | Websites by Mark