Woodlands, TX: (Apr-13-07) A shareholder class action and derivative litigation filed against Newpark Resources, Inc. accused current and former directors and former officers of the company of potential irregularities in the processing and payment of invoices at one of its subsidiaries, Soloco Texas. The lawsuit also alleged improper granting, recording and accounting of backdated grants of stock options to executives. In a settlement reached, Newpark will pay $1.55 million and the company's directors and officers' liability insurance carrier will pay $8.3 million. As part of the settlement, the company is preserving certain claims it may have against its former CEO and CFO for matters arising from the potential invoicing irregularities at Soloco and the backdating of options. Newpark will accrue its share of the settlement costs, along with the legal fees incurred to conclude this settlement, in the first quarter of 2007, ending the lawsuit. [EARTH TIMES: NEWPARK SETTLEMENT]
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