Fieldstone Investment Corporation (NASDAQ:FICC) said late yesterday that it had settled litigation with former Fieldstone shareholders, relating to the price paid by Fieldstone to redeem their shares following the closing of Fieldstone's Rule 144A equity offering in 2003. As part of the settlement agreement, Fieldstone agreed to pay $10.6 million to the former shareholders involved in the lawsuit and has received a full mutual release from all of the parties to the litigation. The settlement opens the doors for the company to complete its previously-announced merger with Credit-Based Asset Servicing and Securitization LLC, announced on February 16.
As a result of the settlement, under the terms of Fieldstone's previously announced merger agreement with Credit-Based Asset Servicing and Securitization LLC, the per share purchase price in the merger will be $5.53 for Fieldstone's common stock. A potential $0.20 per share reduction had been associated with the outstanding litigation, the company said last week. For more information, visit http://www.fieldstoneinvestment.com.
Don't subscribe? Be sure to sign up today to get our free email updates delivered direct to your inbox!