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Furniture Brands settles suits over compensation

Will pay attorney fees, admit no wrongdoing

Heath Combs -- Furniture Today, March 5, 2010

ST. LOUIS, Mo. — Furniture Brands International reported in a Securities and Exchange Committee filing this week that it has settled two lawsuits over its 2008 executive compensation, agreeing to pay the plaintiffs' attorney fees and admitting no wrongdoing.

The cases were filed last spring after the company announced executive compensation awards for 2008. The company's top executives collected more than $10 million in incentive awards that year even as the company's stock price plunged.

The claims were against certain executive officers and sought damages and a return of certain compensation, among other items. Both cases were argued in U.S. District Court in Missouri.

In the SEC filing, FBI said that it had settled the cases in February, agreeing to pay the plaintiffs' attorney fees of $2.4 million. The company said its insurer will pay most of the amount.

The SEC filing added that Furniture Brands has adopted certain corporate governance enhancements.

The settlement, which is still subject to preliminary and final approval by the court, provides that defendants deny any liability or responsibility for the claims made and make no admission of any wrongdoing.

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