Philips Defends Bonus Payouts In $172M Discus Deal

Law360, New York (July 6, 2011, 12:55 PM EDT) -- A unit of Koninklijke Philips Electronics NV filed suit Tuesday in California against the former shareholders of Discus Holdings Inc., defending $2.6 million in management bonuses as part of a $172 million merger agreement with the oral health care company.

Philips Holding USA Inc. seeks to dispel the former shareholders’ claims that the company improperly lavished Discus brass with supplemental bonuses, maintaining that the payments were wholly in keeping with the Discus board’s guidelines for the tie-up.

While Philips distributed $2.6 million in management bonuses to...
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