Summary
American Tower Corporation (AMT) filed an 8-K on May 30, 2006, disclosing the initiation of two lawsuits. The first is a securities class action lawsuit filed in federal court, alleging violations of federal securities laws related to the company's stock option practices and accounting. This follows AMT's prior announcement on May 19, 2006, that it was conducting an internal review of these practices. The company stated its intention to vigorously defend against this suit. The second lawsuit is a shareholder derivative action filed in state court. This action names current and former officers and directors, alleging breaches of fiduciary duties concerning historical stock option granting practices. In response, AMT's board of directors plans to form a special litigation committee to review this derivative lawsuit. The company indicated it would not file additional 8-Ks for substantially similar shareholder derivative or securities class action lawsuits.
Key Highlights
- 1American Tower Corporation is facing a securities class action lawsuit alleging violations of federal securities laws related to stock option practices and accounting.
- 2A shareholder derivative lawsuit has been filed against current and former officers and directors for alleged breaches of fiduciary duties concerning stock option grants.
- 3The company announced an internal review of its historic stock option granting practices on May 19, 2006, prior to these lawsuits.
- 4American Tower Corporation intends to vigorously defend the securities class action lawsuit.
- 5The Board of Directors plans to establish a special litigation committee to evaluate the shareholder derivative lawsuit.
- 6The company will not file further 8-Ks for substantially similar future lawsuits of this nature.