Investors in Safety-Kleen Corp and/or Laidlaw Environmental Services Inc. may soon recover some of their losses in a class-action settlement tentatively approved by a federal judge in South Carolina.
The lawsuit alleges that the companies reported revenue and income in a manner not in conformity with generally accepted accounting principles, or “GAAP.” Specifically, the lawsuit highlights issues with regard to: improper accounting for landfills and environmental liabilities; double billing; fictitious revenue entries; improper purchase accounting; and, improper capitalization of costs.
Eleven former officers and directors of the companies recently agreed to put US$20-million into a fund to be divided among eligible investors and the lawyers who pressed the case. The fund is being provided without an admission of liability. The settlement applies under certain circumstances to people who bought shares between July 9, 1997, and March 6, 2000 or got Laidlaw shares in exchange for Safety-Kleen shares in their 1998 merger, which ended in U.S. bankruptcy court.
For further information, visit: www.hrsclaimsadministration.com/cases/saf
In related news, three former executives of Laidlaw Inc., the former Canadian parent of Laidlaw Environmental, reached a $10-million deal with lawyers representing those who bought Laidlaw shares between October 15, 1997 and April 27, 2000.
For further information, visit: www.berdonllp.com/claims