NIC, Inc. (EGOV)

[seeclear]

NIC Announces Notice to Stockholders of Proposed Settlement Terms Reached in Derivative Action Lawsuit Date : 08/24/2011 @ 8:00AM
Source : Business Wire
Stock : NIC (EGOV)
Quote : 11.23 -0.29 (-2.52%) @ 1:51PM



NIC Announces Notice to Stockholders of Proposed Settlement Terms Reached in Derivative Action Lawsuit print
Nic (NASDAQ:EGOV)
Intraday Stock Chart
Today : Wednesday 24 August 2011
NIC Inc. (Nasdaq: EGOV), the nation’s premier provider of eGovernment services, today announced that it has posted on its website and will mail to stockholders notice of the terms of a proposed settlement in the derivative action lawsuit filed against certain officers and directors and former officers and directors, Sidore v. Bradley, et al., Civil Action No. 2:10-cv-02466-JWL-DJW (D. Kan.). The stockholder derivative action was filed in August 2010 in federal district court in Kansas.

The settlement is subject to final approval by the United States District Court for the District of Kansas at a scheduled hearing on October 11, 2011 in Kansas City, Kansas. If the Court formally approves the parties’ settlement, NIC will implement or maintain certain corporate governance procedures, pay counsel for the plaintiff attorneys’ fees and expenses in the amount of $495,000, and pay the plaintiff $5,000. In exchange, the defendants will be released from all claims made against them or that could have been made against them in the derivative lawsuit, and the lawsuit will be dismissed with prejudice. The Company expects that its $5,000 and $495,000 payments to plaintiff and his counsel will be reimbursed by the Company’s directors' and officers' liability insurance carrier. If the settlement is approved, the Company will also receive a $225,000 payment from its former CEO, Jeff Fraser, and agree to a comprehensive mutual release of claims as between the Company and Mr. Fraser. The full settlement terms are available for download on the Company’s website at http://www.egov.com/investors/Pages/Settlement.aspx

“We are pleased this matter is drawing to a close,” said Harry Herington, NIC Chief Executive Officer and Chairman. “We continue our commitment to providing value to our stockholders through strong corporate governance and solid financial performance.”

The court preliminarily approved the settlement on July 8, 2011, and directed that the Company give notice to stockholders of record as directed in the order of preliminary approval. The Company will mail a notice of the final settlement hearing no later than August 26, 2011, to all stockholders of record as of the date set forth in the order of preliminary approval, which will summarize the terms of the settlement.

According to the order of preliminary approval, the deadline for filing objections to the settlement is two weeks prior to the final settlement hearing, September 27, 2011. The order of preliminary approval and the notice to stockholders set forth the procedural requirements for making objections to the settlement to be considered at the final hearing.

About NIC

NIC is the nation's leading provider of official government portals, online services, and secure payment processing solutions. The company's innovative eGovernment services help reduce costs and increase efficiencies for government agencies, citizens, and businesses across the country. NIC provides eGovernment solutions for more than 3,000 federal, state, and local agencies across the United States. Additional information is available at http://www.egov.com