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As part of the agreement, the appeal of the SEC order will be withdrawn and the parties have agreed that upon final approval of the settlement by the court there will no longer be any persons eligible to become CBOE members under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.
