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 million to cover the plaintiffs attorneys' fees and expenses.
"Costco will institute significant corporate governance...
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