A Chancery Court judge yesterday approved a settlement in a shareholder lawsuit against directors and executives of Tyson Foods.
The settlement, approved by Chancellor William Chandler, calls for Don Tyson and Tyson Limited Partnership, the company’s largest shareholder, to pay the company $4.5 million.
The company also agreed to implement a variety of corporate governance measures in response to the lawsuit, which alleged that Tyson officials were granted stock options timed in advance of favorable news likely to boost the company’s stock price.
The lawsuit also alleged that Tyson failed to adequately disclose certain transactions under which Tyson officials received millions of dollars from the company for farm and aircraft leases, livestock operations, and other services.