Costco, Execs To Pay $4.85M In Backdating Suit

Law360, New York (June 14, 2011, 2:13 PM EDT) -- Costco Wholesale Corp. and some of its top executives on Friday settled for $4.85 million a shareholder derivative suit in Washington state claiming the company lost millions of dollars due to a decadelong stock option backdating scheme.

As part of the agreement with the Pirelli Armstrong Tire Corp. Retiree Medical Benefits Trust, Costco has agreed to make changes to it corporate governance and stock option program, adding an internal audit department and implementing more rigorous employee training, among other reforms. The retailer will also pay $4.85...
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Case Title

Pirelli Armstrong Tire Corporation Retiree Medical Benefits Trust v. Sinegal et al


Case Number

2:08-cv-01450

Court

Washington Western

Nature of Suit

Securities/Commodities

Judge

Thomas S. Zilly

Date Filed

September 29, 2008

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