Ahold settles securities class action in the United States
Ahold settles securities class action in the United States and litigation with the Vereniging van Effectenbezitters
Ahold also announced that it has reached an agreement to settle litigation with the Vereniging van Effectenbezitters (VEB) (Dutch Shareholders' Association).
Under the terms of the agreement in the securities class action, the lead plaintiffs in the securities class action agree to settle all claims against Ahold in the securities class action for the sum of USD 1.1 billion (EUR 945 million). The settlement covers Ahold, its subsidiaries and affiliates, the individual defendants and the underwriters.
The settlement is worldwide and applies to all qualifying common shares of Ahold. The term "qualifying shares" refers to all those common shares which were purchased between July 30, 1999 and February 23, 2003. According to preliminary calculations made by Ahold, the settlement amount, after deduction of plaintiffs' attorneys' fees, compensation in the amount of USD 9 million (EUR 7.5 million) to (an entity designated by) the VEB for facilitating the global settlement and administrative expenses, would yield a pre-tax amount of approximately USD 1.00 to 1.30 per qualifying share (EUR 0.90 to 1.15). US and non-US holders of qualifying shares will be treated equally under the agreement.
Ahold will contribute to the settlement fund, from which the qualifying shares will be paid, in two instalments: two thirds of the settlement amount will be funded into escrow within three business days following preliminary court approval of the settlement by the District Court of the District of Maryland, which is expected as early as January 2006, and the remaining one third will be funded into escrow within six months following final court approval of the settlement.
The agreement will be subject to approval of the District Court of the District of Maryland.
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