Summary
American Tower Corporation (AMT) announced on December 13, 2007, that it has reached an agreement in principle to settle a consolidated securities class action lawsuit. The lawsuit, filed in May 2006, pertains to the company's historical stock option granting practices and related accounting. The proposed settlement requires AMT to pay $14 million and would resolve all claims against all defendants. The company is currently in discussions with its insurers regarding their contribution to the settlement amount. AMT expects to record an income statement charge for the settlement, including related legal fees and expenses incurred after September 30, 2007, net of any anticipated insurance proceeds. This charge will be recognized in the fourth quarter and full year 2007 financial results.
Key Highlights
- 1AMT has reached a settlement in principle for a securities class action lawsuit related to historical stock option granting practices and accounting.
- 2The proposed settlement amount is $14 million.
- 3The settlement, if approved, would dismiss all claims against all defendants in the litigation.
- 4The company is negotiating with its insurers for contribution towards the settlement cost.
- 5A net charge for the settlement and associated legal fees (after insurance proceeds) is expected in the Q4 and full-year 2007 financial statements.
- 6The settlement is subject to final documentation and court approval.