Tuesday, 21 February 2017
Last updated 3 days ago
Dec 18 2008 | 2:59am ET
The battle between CSX Corp. and a pair of activist hedge funds is finally over, three months after the railroad agreed to seat four director nominees proffered by the hedge funds.
Under a proposed settlement, The Children’s Investment Fund will pay $10 million, and 3G Capital Management $1 million, to settle a lawsuit accusing the hedge funds of violating securities laws. The funds’ countersuit has been dismissed.
TCI and 3G prevailed over CSX management in a proxy fight, electing four directors to the company’s 12-member board. After battling to keep two from taking their seats—CSX asked a court to disenfranchise the hedge funds for their alleged securities law violations—the railroad in September said it would seat all four nominees.
As part of the settlement, TCI and 3G have denied any wrongdoing in their battle with CSX.