Directors & Boards, September 22nd, 2007
A RECENT $41.5 MILLION SETTLEMENT by five former outside directors of Just for Feet Inc. brings independent director liability back into the spotlight. Somewhat surprisingly, the size of the personal contributions in this case were significantly greater than the notorious outside director settlements involving WorldCom ($24.8 million) and Enron ($13 million).
The settlement ends litigation stemming from Just for Feet's collapse in 1999 relating to accounting fraud. After the company filed for bankruptcy in November 1999, a bankruptcy trustee was appointed to recover money for the company's ...
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