(The Associated Press circulated the following on March 8, 2009.)
NEW YORK — CSX Corp. said a New York Federal Court has approved a settlement in which the railroad operator will be paid $11 million by two activist shareholder hedge funds over alleged securities law violations.
CSX said late Friday it will receive $10 million from TCI, which manages The Children’s Master Investment Fund, and $1 million from 3G Capital Management, less $550,000 in attorney’s fees and other expenses.
The case, brought by a CSX shareholder, accused the hedge funds of collecting “short-swing” profits, or using insider information to grab short-term gains.
CSX shares closed Friday at $21.59, just slightly above its 52-week low of $21.12, set earlier in the session. The stock has traded as high as $70.70 in the past year.