A former chairman of Rio Algom (TSE) has resolved his legal differences with the company. George Albino brought a $10-million wrongful dismissal suit against Rio after being removed from office in 1987. The settlement will see Albino receive his full pension. Albino has agreed to drop his other claims against the company.
Rio, controlled by RTZ Corp. of London, produces a variety of metals and minerals in Canada, including uranium, potash, copper and tin.
Settlement of the lawsuit means the Ontario Securities Commission (OSC) may now proceed with its hearing into an alleged misuse of a phantom stock option plan by Albino when he was running the company.
The OSC hearing was halted in January pending a court ruling or settlement. Albino has had his provincial securities trading privileges suspended while awaiting the conclusion of the hearing.
Phantom stock plans allow company executives participating in such plans to benefit financially from non-trading units which imitate the company’s common shares. Unit-holders may receive the same dividends as regular shareholders. However, unit-holders cashing in their units receive only the capital gain, not the base value.
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