Home Depot Case 06/23/2006

According to a press release Home Depot has agreed to fork over $14.5 million to settle a number of costly shareholder lawsuits tied to stock option and compensation practices, it said in a federal filing on Thursday. Home Depot said in its filing with the U.S. Securities and Exchange Commission that it entered into a settlement agreement on March 28 with a group of shareholders who were suing the company. "We're pleased to have reached an agreement with the plaintiffs, as lengthy litigation would have been very expensive and a distraction to the company," the retailer said in a statement. Three shareholder actions were filed against certain current directors and its former chief executive officer in late 2006, the filing read. The three actions were consolidated and the plaintiffs filed a consolidated amended complaint, alleging breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment in connection with the company's stock option and compensation practices, according to the filing. The filing said the defendants have moved to dismiss the complaint, which sought unspecified damages, injunctive relief, punitive damages, and costs and attorneys' fees. The $14.5 million settlement also involves a securities lawsuit filed in the U.S. District Court for the Northern District of Georgia against Home Depot and certain of its current and former directors alleging violations of the Securities Exchange Act of 1934. … The filing said the settlement, including the award to plaintiffs' counsel, is subject to the approval of the Superior Court of Fulton County, Georgia, among other conditions.