Source: Bisys
The BISYS Group, Inc. (NYSE:BSG), a leading provider of outsourcing solutions for the financial services sector, announced today that it has reached an agreement in principle with the lead plaintiffs to settle the securities class action lawsuit entitled "In re BISYS Securities Litigation" File No. 04-CV-3840 and a related securities action pending against it and certain of its former officers and directors in the United States District Court for the Southern District of New York.
The proposed settlement involves claims relating to the Company's financial disclosures, including allegations concerning its financial restatements filed in 2005 and 2006, and is conditioned upon successful negotiation of definitive documentation and approval by the Court.
Under the proposed settlement, BISYS will pay an aggregate of $66.5 million in cash into an escrow account within 10 days after preliminary Court approval. The settlement, which includes no admission of wrongdoing by BISYS or any of the individual defendants, will be funded through a combination of cash on hand, BISYS's existing credit facility and available insurance proceeds under its $25 million directors and officers liability policy. BISYS is currently in discussions with its insurance carriers to determine the final amount of available insurance proceeds.
"We are pleased to have reached this settlement and firmly believe that it is in the best interest of the Company and its shareholders," said Robert Casale, Chairman, and Interim CEO and President of BISYS. "We see this as a significant step forward in putting the Company's financial reporting issues from the past behind us and allowing the Company to focus on growing its business and pursuing opportunities to maximize shareholder value."