According to the terms of the securities class action memorandum of understanding, the plaintiffs agree in principle to settle the claims for an $80m cash payment, of which $20m will be paid by the company’s insurance coverage.
The derivative claims memorandum of understanding allows for amendments to the company’s business, corporate governance and internal controls, some of which have already been implemented in whole or in part in connection with its recent recapitalization.
The memoranda of understanding are contingent up on negotiation and implementation of definitive settlement documents comprising usual and customary terms of settlement agreement, notice to the class and shareholders, and approval of the court.
Pamela Patsley, chairman and CEO of MoneyGram, said: “We are pleased to be able to enter into these agreements and bring to conclusion these legal proceedings. My goal since joining MoneyGram has been to re-focus the organization on our core business and transform the company into a global market leader. These agreements will put these claims behind us and move MoneyGram another step forward towards the achievement of that goal.
“MoneyGram is committed to ensuring that its Board of Directors embodies the highest standards of governance and oversight for MoneyGram and its shareholders. Our Nominating Committee and board will work to ensure that the MoneyGram Board of Directors and Audit Committee are comprised of directors best suited to uphold these standards.”
