A financial services support services company may be close to resolving investor litigation.
BISYS Group Inc., Roseland, N.J., says it has reached an agreement in principle with the lead plaintiffs to settle the securities class action lawsuit, In re BISYS Securities Litigation, and a related suit filed in the U.S. District Court in New York.
Implementation of the settlement “is conditioned upon successful negotiation of definitive documentation and approval by the court,” BISYS says.
The proposed settlement calls for BISYS to pay $66.5 million into an escrow account for the benefit of investors within 10 days after the court approves the agreement.
The proposed settlement involves claims relating to financial disclosures and financial report restatements in 2005 and 2006.
The settlement “includes no admission of wrongdoing by BISYS or any of the individual defendants,” BISYS says.
BISYS says it hopes to get some of the settlement funding from a $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,” BISYS says.