Monster has settled a class action lawsuit brought in connection with the company’s stock options backdating scandal.
In a filing with the Securities and Exchange Commission today, Monster Worldwide says it will pay $4.25 million in full settlement of the action. “A substantial majority” of the money will come, the company says, from insurance “and contributions from another defendant.”
The filing, Taylor v. McKelvey, et. al., does not name the other defendant. However, the now-deceased former chairman and CEO Andrew McKelvey is one of at least six former Monster executives and directors who were sued.
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Monster said it will reverse $6.85 million it had previously set aside in connection with this litigation in its 3rd quarter financials.
In its most recent quarterly filing with the SEC, Monster said the now-settled Taylor case was “one civil action pending against it in connection with its historical stock option granting practices.”