SiliconBeat

We posted back in June about the proposed settlement Electronics for Imaging says it has reached in the litigation relating to its past stock option granting practices that accused some of the company’s officers and directors of breaching their “fiduciary duties” in the matter. At that time, mention was of “certain payments to be made to the company” that were not specified. “By whom and for what, we must wait to see,” we wrote at the time.

It looks like we now know have answers based on a release EFI put out today announcing a final
settlement date in the matter.

The “certain payments” turn out to come from “some defendants” in the action who will “contribute their rights to an additional $19 million in insurance proceeds,” the same defendants who have agreed to “cancel, return or reprice certain mispriced and other stock options.”

So let’s see if we’ve got this straight: certain defendants were due to be paid $19 million by their insurance carriers as claims against, um, what, the profits they might have gained from the tainted stock options they gave up?

The company also said it won’t let this kind of stuff happen again because it has agreed to implement “”certain corporate governance reforms.”

Any shareholders who wants to contest the settlement, or the more than $3 million to be paid in attorney fees and costs, “MAY DO SO BY FOLLOWING THE PROCEDURE SET FORTH IN PARAGRAPH 21 OF THE NOTICE OF PENDENCY OF CLASS AND DERIVATIVE ACTION.” (Their emphasis, not ours.)

In case you are such a shareholder and haven’t received your notice about this proposed
settlement offer, “you may obtain copies by contacting the Notice Administrator at Gilardi &
Co., P.O. Box 5100, Larkspur, 94977-5100.” Good luck.