Published in News
Xerox pays up in shareholder suit
Writes cheque for $69 million
Xerox has agreed to write a $69 million cheque to make lawyers from several of its shareholders go away.
The lawsuits were over the company's acquisition of Dallas-based Affiliated Computer Services last year During the $6 billion acquisition there were some additional, exclusive payments to ACS founder Darwin Deason totaling hundreds of millions of dollars.
Deason got a billion in stock and cash from Xerox, including a $300 million premium for his Class B shares of ACS. ACS had defended the premium, saying it was "consistent with other strategic acquisitions of similar scope and size."
However several shareholder lawsuits were filed in Dallas and Delaware, alleging that Deason's deal was overly generous compared with what other ACS stockholders stood to receive. In a Securities and Exchange Commission filing Wednesday, Xerox said it "did not admit to any wrongdoing."
Under the terms of the deal, Deason will pay $12.8 million of the settlement amount back.