Morris Township, NJ, Jun. 4--Honeywell today announced that it had reached an agreement to resolve shareholder litigation pending against the company and three former officers relating to the 1999 AlliedSignal/Honeywell merger and financial projections and disclosures during the first half of the year 2000.
The settlement is in the best interest of Honeywell's shareholders, as it will avoid the substantial burden, expense and uncertainties that would be involved in protracted litigation.
The terms of the settlement, which must be approved by the court, includes a payment into an escrow fund of $100 million, $85 million from Honeywell's insurers and $15 million from Honeywell. The payment by Honeywell is fully reserved.
