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 million to cover the plaintiffs attorneys' fees and expenses.

"Costco will institute significant corporate governance...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Attached Documents

Related Sections

Case Information

Case Title

Subscribers Only

Case Number

Subscribers Only


Subscribers Only

Nature of Suit

Subscribers Only


Subscribers Only

Date Filed

Subscribers Only

Law Firms


Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!