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Institutions Push For Governance Changes In Settlements

Taub Stephen | May 3, 2005

Houston-based energy company Dynegy, and Columbus, Ohio-based bank Huntington Bancshares don’t have much in common.

Except for maybe one thing—they both agreed to settle shareholder litigation by agreeing to governance changes they probably wouldn’t have dreamed of just a few years ago.

Two weeks ago, Dynegy said it would pay $468 million as part of an agreement to settle a class action lawsuit stemming from its accounting treatment and disclosures associated with a 2001 structured natural gas transaction known as "Project Alpha."

Under the agreement, the company also agreed to elect two new board members from a list of candidates supplied by the regents of the University of California, which represented the class.

As we have chronicled over the past year, just a handful of companies—including Ashland and Hanover Compressor—have recently agreed to...

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