Sep 2006 Financial News

DB&G, Former Exec Settles Lawsuit

Sep 21, 2006

Former Dehring Bunting & Golding (DB&G) executive Mark Walters yesterday confirmed that he had reached an out-of-court settlement with the brokerage house which he had sued for $750 million.

Walters spoke to the Observer a day after DB&G announced the settlement in a news release.

"We are pleased to announce that we have amicably settled all disputes on mutually acceptable terms and are discontinuing the litigation," the company said in its news release.

DB&G also said that the terms of the settlement are confidential and will not have a material impact on its financial results.

Yesterday, Observer sources said the settlement was less than 10 per cent of what Walters had demanded.

Walters had brought action against DB&G in January 2005 claiming compensation for contribution to the company's bottom line.

But DB&G, in a response to the claim, explained that Walters was employed in December 1997 as senior manager of treasury and asset trading and resigned by mutual agreement in May 2004. "The termination agreement included a substantial ex gratia termination payment, which took into account all his emoluments, including profit share," the firm said.

DB&G also said it regarded Walters' claim as "baseless and absurd", saying that for the entire period of his employment DB&G's profits did not exceed $1.15 billion.
Based on that, the company questioned Walters' motives for "claiming nearly three quarters of that for himself".

It was reported at the time that Walters was offered an employee share offer plan (ESOP) of 1.8 million shares at a price of $0.75 per share. The ESOP was valued at $1.35 million and was facilitated by a loan at 12 per cent. During the time Walters was employed to the firm, there was a one-for-one bonus share offer, which doubled his holdings to 3.6 million shares.

"Taking the matter to court was not an easy decision," Walters said at the time. "As far as I am concerned, I had a contract with DB&G that outlined specific performance measures and I met them. And so, like any contract dispute, you refer it to the courts."

Source:

Dennise Williams
The Jamaica Observer
Thursday, September 21, 2006

http://www.jamaicaobserver.com/magazines/Business/html/20060920T230000-0500_113144_OBS_DB_G__FORMER_EXEC_SETTLE_LAWSUIT.asp