In a May 17, 2010 column that appeared in the San Diego Business Journal, Robbins Umeda LLP* partner Brian Robbins discussed the terms of the settlement that the firm obtained from Kratos Defense & Security Solutions Inc. and its former executives. “We are very proud of the benefits achieved for Kratos shareholders and Kratos in this settlement,” Robbins said. Robbins, co-lead counsel representing the shareholders, added that the settlement included all of the components involved in derivative suit settlements, namely adoption of corporate governance measures, the payment of money to the company, and the forfeiture of stock or options to the company. “This settlement includes all of these components, and also establishes meaningful stock voting restrictions for certain insiders,” Robbins noted.
The column reported that under the terms of the settlement reached on April 29, at least 54,000 stock options, and potentially as many as 94,000, were forfeited back to the company. Kratos also agreed to adopt a wide range of improved corporate governance procedures. Among the changes, it agreed to add two independent directors to the company’s board and conduct a yearly review of the chairman’s performance.
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* The firm name changed from Robbins Umeda LLP to Robbins LLP on January 1, 2013.
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