Caterpillar's Taxable Bonuses Wasted Funds, Investors Say

Law360, Wilmington (August 28, 2012, 7:00 PM EDT) -- Two shareholders launched derivative suits in Delaware federal court Monday claiming Caterpillar Inc.'s directors and certain executives wasted corporate funds by awarding and accepting incentive payments that were not tax-deductible as the board had represented.

The two identical complaints claim Caterpillar's 17-member board misled shareholders about the allegedly faulty executive-incentive plans and allege both directors and executives wasted assets and benefited unjustly through the paying and receiving of nondeductible bonuses.

“Because the plans are invalid and defective, such awards will subject the company to millions of...
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Case Information

Case Title

In Re: Caterpiller Inc. Derivative Litigation


Case Number

1:12-cv-01076

Court

Delaware

Nature of Suit

Securities/Commodities

Judge

Leonard P. Stark

Date Filed

August 27, 2012


Case Title

Asbestos Workers Philadelphia Pension Fund v. Calhoun et al


Case Number

1:12-cv-01077

Court

Delaware

Nature of Suit

Securities/Commodities

Judge

Leonard P. Stark

Date Filed

August 27, 2012

Companies

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