US packaged foods manufacturer ConAgra Foods has announced that it has reached an agreement to settle a class action shareholder lawsuit, brought in 2001.
The suit was principally related to accounting matters at a former ConAgra Foods subsidiary, United Agri Products (UAP), following the company’s June 2001 restatement of earnings in connection with UAP for fiscal years 1997-2001. ConAgra Foods sold UAP in November 2003.
ConAgra said the US$14m settlement, which is largely covered by insurance, is without any admission of liability or wrongdoing. The company commented that it is “pleased to have the uncertainty and expense of the lawsuit behind it”.