CME Group Announces Definitive Agreement to Settle Exercise Right Lawsuit
August 20 2008 - 4:22PM
PR Newswire (US)
CHICAGO, Aug. 20 /PRNewswire-FirstCall/ -- CME Group (NASDAQ:CME)
today announced that it, along with Class representatives, had
reached a definitive settlement agreement with CBOE related to CME
Group, Inc., et al. v. Chicago Board Options Exchange, Inc. et al
commonly known as the Exercise Right lawsuit. Under the settlement
terms, eligible settlement class members will share in CBOE equity
and will also receive a cash payment: -- Equity will be distributed
to eligible settlement class members equal to 18 percent of the
equity to be distributed to them and CBOE members in CBOE's
demutualization. -- Cash payments will be made to eligible
settlement class members in the aggregate amount of $300 million.
As part of the agreement, the appeal of the SEC order will be
withdrawn and the parties have agreed that upon final approval of
the settlement by the court there will no longer be any persons
eligible to become CBOE members under the Exercise Right. All
claims that were or could have been brought in the Delaware court
will be dismissed. As a result, CBOE will be free to demutualize
and has agreed to take reasonable steps to demutualize as soon as
commercially possible. The settlement terms are subject to approval
of CBOE members as well as the Delaware Chancery Court. Specific
details regarding the terms of the settlement are set forth in the
Stipulation of Settlement which will be available on the CME's and
the CBOT's websites. Also, a Class Notice describing the settlement
terms will be mailed to potential class members shortly. CME Group
(http://www.cmegroup.com/) is the world's largest and most diverse
derivatives exchange. Formed by the 2007 merger of the Chicago
Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT),
CME Group serves the risk management needs of customers around the
globe. As an international marketplace, CME Group brings buyers and
sellers together on the CME Globex electronic trading platform and
on its trading floors. CME Group offers the widest range of
benchmark products available across all major asset classes,
including futures and options based on interest rates, equity
indexes, foreign exchange, agricultural commodities, and
alternative investment products such as weather and real estate.
CME Group is listed on NASDAQ under the symbol "CME."
Forward-Looking Statements This press release may contain
forward-looking information regarding Chicago Mercantile Exchange
Holdings Inc. and CBOT Holdings, Inc. and the combined company
after the completion of the merger that are intended to be covered
by the safe harbor for "forward-looking statements" provided by the
Private Securities Litigation Reform Act of 1995. These statements
include, but are not limited to, the benefits of the business
combination transaction involving CME and CBOT, including future
financial and operating results, the new company's plans,
objectives, expectations and intentions and other statements that
are not historical facts. Such statements are based on current
beliefs, expectations, forecasts and assumptions of CME and CBOT's
management which are subject to risks and uncertainties which could
cause actual outcomes and result to differ materially from these
statements. Other risks and uncertainties relating to the proposed
transaction include, but are not limited to the satisfaction of
conditions to closing; including receipt of shareholder, member,
antitrust, regulatory and other approvals on the proposed terms;
the proposed transaction may not be consummated on the proposed
terms; uncertainty of the expected financial performance of CME
following completion of the proposed transaction; CME may not be
able to achieve the expected cost savings, synergies and other
strategic benefits as a result of the proposed transaction; the
integration of CBOT with CME's operations may not be successful or
may be materially delayed or may be more costly or difficult than
expected; general industry and market conditions; general domestic
and international economic conditions; and governmental laws and
regulations affecting domestic and foreign operations. For more
information regarding other related risks, see Item 1A of CME's
Annual Report on Form 10-K for the fiscal year ended December 31,
2006. Copies of said 10-K is available online at
http://www.sec.gov/ or on request from the CME. You should not
place undue reliance on forward-looking statements, which speak
only as of the date of this press release. Except for any
obligation to disclose material information under the Federal
securities laws, CME undertakes no obligation to release publicly
any revisions to any forward- looking statements to reflect events
or circumstances after the date of this press release. CME-G
DATASOURCE: CME Group CONTACT: Media, Allan Schoenberg,
+1-312-930-8189, or Mary Haffenberg, +1-312-930-3435, , or
Investors, John Peschier, +1-312-930-8491, all of CME Group; or
Media - Class, Gordon Nash, +1-312-569-1384, , for CME Group Web
site: http://www.cme.com/
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