Renal Care Group Settles Securities Action for $4M

Law360, Los Angeles (December 6, 2012, 7:03 PM EST) -- Renal Care Group Inc. has agreed to pay $4 million to settle a securities class action filed in Tennessee state court by an Indiana-based pension fund that sued over the medical company's 2006 sale to kidney dialysis provider Fresenius Medical Care AG for $3.5 billion.

The shareholders’ complaint, filed in 2005, alleged that Renal Care’s board members sought out the merger with Germany-based Fresenius to cover their liability for their stock options backdating practices, which were the target of a federal investigation.

Options backdating is the...
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