Xerox Corp. in Norwalk, the world’s largest maker of high-speed color printers, won final approval for the $69 million settlement of a shareholder lawsuit challenging its $6 billion takeover of Affiliated Computer Services Inc., The Associated Press reports.
ACS investors sued in Delaware Chancery Court and in state court in Texas alleging directors of the student-loan processing company wrongfully agreed to allow ex-Chairman Darwin Deason to collect more than $1 billion in the buyout. The settlement resolves both the Delaware and Texas claims.
“$69 million is a high monetary benefit” for ACS investors, Delaware Chancery Court Judge Donald Parsons Jr. said today in giving final approval to the accord. He also approved $17.2 million in legal fees for investors’ lawyers.
ACS said Sept. 28 that Xerox would pay $18.60 in cash and 4.935 Xerox shares for each ACS share. A union and a pension fund with ACS stock said the price was too low and Deason was getting an unfair windfall.
Lisa Weaver, a spokeswoman for Xerox, didn’t immediately return a call for comment on the settlement’s approval.
Under the agreement, according to court papers, ACS will pay $56.1 million and Deason will pay $12.8 million, some subject to insurance payments. Former ACS stockholders who file claims will share what’s left of the settlement fund after legal fees and administrative expenses,
