Purchase, NY: (Sep-17-07) A class action lawsuit was brought against Brantley Capital Corp. and certain individuals associated with its former management in November 2006. On February 7, 2007 Brantley Capital filed a lawsuit against its former investment manager, Brantley Capital Management LLC, certain associated individuals, and affiliated entities, alleging various wrongful acts by the company's former management team.
In a settlement reached, the company announced that it entered a memorandum of understanding, part of which, is a $3.75 million payout. The money, a significant part from insurance carriers, is to be paid into an escrow account designated by the lead plaintiff in the class action. Further, both lawsuits are to be dismissed with prejudice, and the company and its present and former officers, directors, employees, and advisers are to receive releases, including from, among other things, previously announced indemnification demands. The escrow account funds would be used to make payments to class members, to cover claims administration and notice costs, and to cover the class action lead plaintiff's attorneys fees and expenses. Sources stated that Brantley Capital would not be required under the proposed settlement to contribute any money to the settlement. [INSURANCE NEWS NET: BRANTLEY CAPITAL]
