Proposed Settlement Reached on Derivative Lawsuits
20 September 2007
St. Petersburg, FL – September 20, 2007 - Jabil Circuit, Inc. (NYSE: JBL), a global electronic product solutions company, today announced that an agreement in principle had been reached to resolve all pending derivative litigations alleging that stock option grants to certain members of senior management had been backdated.
As disclosed in May 2006, Jabil has been involved in shareholder derivative and purported securities class action lawsuits and received inquiries from the government regarding certain of its historical stock option grants. As a result, the Company, through its legal counsel and assisted by accounting advisors, undertook an evaluation of certain of its historical stock option grant practices. In addition, a Special Review Committee of the Company’s Board of Directors was also appointed to review the allegations in the derivative actions. The Special Review Committee concluded, as previously announced, that there was no merit to allegations that the Company’s officers or anyone else issued themselves backdated stock options or attempted to cause others to issue them.
Under the terms of the settlement, which is still subject to the preparation of detailed documentation, as well as approval by Jabil's Board and by the courts, Jabil will adopt several new policies and procedures to improve the process through which equity awards are determined, approved and accounted for. The proposed settlement does not entail any payment of money. Jabil has agreed that it will not object to an application by plaintiff's counsel for an award of up to eight hundred thousand dollars in attorney's fees. Six hundred thousand of the total award will be covered by Jabil's Directors and Officers insurance carriers.
The settlement of the derivative suits does not affect the pending putative class actions asserting claims under the federal securities laws, which defendants have moved to dismiss and will continue to vigorously defend as without merit.
About Jabil
Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. With more than 75,000 employees and facilities in 20 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, “JBL”. Further information is available on the company’s website: jabil.com.
Investor & Media Contact:
Beth Walters
(727) 803-3349
investor_relations@jabil.com