(The Associated Press circulated the following on December 17.)
NEW YORK — Railroad CSX Corp. said Wednesday it has settled a case of alleged securities law violations with two activist shareholder hedge funds.
If the settlement is approved by a federal court, CSX will receive $10 million from TCI, which manages The Children’s Master Investment Fund, and $1 million from 3G Capital Management.
The case, brought by a CSX shareholder, accused the hedge funds of collecting “short-swing” profits, or using insider information to nab a short-term gain. But under the settlement, the hedge funds deny any wrongdoing.
CSX also said Wednesday the countersuit brought on by the hedge funds, which accused the company of violating its corporate insider trading policy, has been dismissed.
CSX, after being locked in a legal battle with the hedge funds for more than a year, brought on four of the fund’s representatives to its board in September.
Shares of CSX rose 28 cents to $34.23 in morning trading amid a lower broader market. Top of page