Electronic Data Directors To Pay $6M To Settle Suit

Law360, New York (October 10, 2007, 12:00 AM EDT) -- The officers and directors of Electronic Data Systems Corp. targeted by a derivative lawsuit have agreed to pay $6 million to settle allegations that they improperly recorded contracts in order to falsely inflate revenues by $300 million.

Shareholders suing on behalf of EDS filed a stipulation of settlement on Wednesday in the U.S. District Court for the Eastern District of Texas. According to court documents, the defendants will create a $6 million fund for the benefit of EDS, which will be controlled by an escrow agent....
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