Telstra Strikes $4.4M Deal On Shareholder Suit

Law360, New York (November 12, 2007, 12:00 AM EST) -- Australian telecommunications giant Telstra Corp. has agreed to dole out up to $4.4 million to bury a shareholder class action, reportedly becoming the first company in the country to pay to settle breach of fiduciary duty accusations.

If the Federal Court of Australia approves the deal proposed on Friday, Telstra will pay a maximum of $4.4 million (AUS $5 million) to be divided between 30,000 shareholders – just 1.7 % of the AUS $300 million the plaintiffs demanded in their class action.

Despite the significantly smaller...
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