PHOENIX (dpa-AFX) - The law firm of Chimicles & Tikellis LLP and its client, DauphinCounty Employee Retirement Fund, have reached a Settlement on behalf of Freeport-McMoRan, Inc. (FCX) with certain of the Company's directors and officers.
The settlement, totaling $137.5 million and subject to approval by the Delaware Court of Chancery, will resolve shareholder derivative actions brought beginning in late 2012 relating to Freeport-McMoRan's acquisition of its affiliate McMoRan Exploration and of Plains Exploration.
The Settlement provides that Defendants will cause a dividend in the amount of $137.5 million to be paid to Freeport-McMoRan stockholders. The Settlement also requires that Freeport-McMoRan adopt and preserve improved corporate governance practices.
In addition, the Settlement allows Plaintiffs to pursue additional claims against Credit Suisse, which acted as a financial advisor to Freeport-McMoRan in connection with the acquisition.
Separately, Freeport-McMoRan confirmed that a Stipulation and Agreement of Settlement, Compromise and Release was entered into with respect to the consolidated stockholder derivative litigation.
This settlement will resolve all pending derivative claims against directors and officers of Freeport-McMoRan Inc. challenging the Company's 2013 acquisitions of Plains Exploration & Production Company and McMoRan Exploration Co.
As per the Stipulation, insurers under the directors and officers liability insurance policies of the Company will fund to the Company $115 million. The settlement is conditioned upon the Company's Board of Directors resolving to declare a special dividend in an aggregate amount not less than the net proceeds received by the Company in respect of the settlement plus an additional $22.5 million to be funded by the Company.
In December 2012, Freeport-McMoRan said it agreed to acquire Plains Exploration & Production for about $6.9 billion in cash and stock and also acquire McMoRan Exploration for a net $2.1 billion. The transactions, which enabled Freeport-McMoRan to add oil and gas assets to its mining portfolio, closed in 2013.
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