AFX Europe (Focus): Royal Dutch/Shell settles employee class action suit, to pay some 90 mln usd: “The Royal Dutch/Shell Group said it reached a settlement in a class action and related litigation brought against certain group companies on behalf of some employees and relating to Shell's reserves recategorisations.”: Tuesday July 12, 2005
AMSTERDAM (AFX) - The Royal Dutch/Shell Group said it reached a settlement in a class action and related litigation brought against certain group companies on behalf of some employees and relating to Shell's reserves recategorisations.
If the settlement is approved by the court, Shell will pay 90 mln usd which, after deduction of certain expenses, will be distributed to eligible participants in the relevant US employee savings plans.
Shell also has agreed to pay up to 1 mln usd of plaintiffs' counsel's expenses and the costs of providing notice to class members.
As part of the settlement agreement, Shell has agreed to adopt certain new procedures for monitoring and training individuals appointed to fiduciary positions in savings plans that are subject to ERISA (Employee Retirement Security Act of 1974).
Shell noted that of the proposed settlement amount, 25 mln is covered by insurance policies.
The settlement relates to all ERISA-based claims relating to the reserves recategorisations, but does not relate to or affect pending securities claims, the company noted.
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