Autoliv Reaches Deal In Principle To Settle US Securities Class Action

(RTTNews) - Autoliv Inc. (ALV) said that it has entered into a memorandum of understanding regarding the settlement of its pending US class action securities lawsuit.

The company has reached a memorandum of understanding with Plaintiff reflecting an agreement in principle to settle the lawsuit and the claims of the alleged class for a payment of $22.5 million. It expects to record a net expense of approximately $4.5 million in its second quarter results. The balance of the settlement amount will be paid by Autoliv's insurance carrier.

The proposed agreement is subject to negotiation and execution of a final settlement agreement among the parties and final approval by the court following notice to the settlement class and a fairness hearing.

As previously indicated, Autoliv Inc., two of its officers and one of its employees are defendants in a purported class action securities lawsuit filed by the Construction Laborers Pension Trust of Greater St. Louis or "Plaintiff" on April 17, 2013 in the United States District Court for the Southern District of New York.

The lawsuit alleged that Autoliv misrepresented or failed to disclose that antitrust violations by Autoliv artificially inflated Autoliv's earnings and stock price in violation of the federal securities laws. Plaintiff seeks to recover an unspecified amount of damages on behalf of the alleged class of purchasers who bought Autoliv common stock between October 26, 2010 and July 21, 2011.