Toll Brothers Execs Pay $16M To End Suit Over Stock Sales

Law360, Wilmington (December 7, 2012, 2:18 PM EST) -- Toll Brothers Inc.'s top brass on Thursday minted a $16.2 million settlement with shareholders in a derivative suit accusing them of selling off $615 million in stock with the benefit of gloomy internal projections while painting a much rosier picture for the luxury homebuilder's public investors.

According to documents filed in Delaware Chancery Court, the deal resolves allegations that eight officials breached their duty to shareholders by selling the stock in 2004 and 2005 based on nonpublic information that belied representations to investors about the Horsham,...
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