Freeport Pays $138M in Derivative Suit, Including Dividend
January 15, 2015
Christine S. Azar comments on unique derivative suit settlement in In re Freeport-McMoRan Copper & Gold Inc. Derivative Litigation
The settlement will take the unusual step — for a derivative suit — of giving shareholders some cash via a special dividend. It does away with claims in Delaware Chancery Court that the Phoenix-based mining company's board overpaid to acquire Plains Exploration & Production Co. and McMoRan Exploration Co. in deals the complaint said were driven by the self-interest of certain Freeport directors.
"We are pleased to be able to provide the stockholders of Freeport a significant monetary recovery and to enhance the company's governance structure going forward,” Labaton Sucharow's Delaware partner in charge of the Firm's Delaware office, Christine Azar, said.