Monster Settles Stock Options Lawsuit

Monster LogoMonster 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.

Article Continues Below

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.”

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

Topics

Leave a Comment

Your email address will not be published. Required fields are marked *