Ahold: At Least We're Not #1, 2, 3 or 4!
As discussed here, Ahold's agreement to settle the securities class action against for $1.1 billion is the 5th largest settlement in history. The company seems to be taking great comfort from the fact that these four other larger settlements exist. As discussed in this article from the Daily Telegraph, Ahold Executive board member Peter Wakkie
said yesterday the settlement was fair to US investors and other shareholders and to the company itself: "It is a substantial compensation for shareholders of between $1 and $1.30 per share. This is not so high that it will bring Ahold into problems.
"Other lawsuits have been settled for well over $2 billion so we are happy we are having to pay an amount that's south of that."
So the new standard has been set for defendants--if any other company has settled any other, unrelated lawsuit for more than you are agreeing to settle for... you should be happy! Plaintiffs' lawyers, I think this should work out just fine for you.
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