Investors in New York-based Overseas Shipholding Group (OSG) have come to a $16.25 million lawsuit settlement with the tanker operating company’s executives, underwriters and an auditor.
The lawsuit relates to the firm’s 2012 bankruptcy and tax issues.
OSG executives agreed to pay $10.5 million, underwriters (including Citigroup, Deutsche Bank and Goldman Sachs) will pay $4 million, and accounting firm PricewaterhouseCoopers will pay $1.75 million, according to papers filed in a Manhattan federal court.
Shareholders sued the company’s officers as it headed towards Chapter 11 bankruptcy in late 2012. They accused the 21 defendants of making false and misleading statements about OSG’s operational status and financial projections, including its outstanding tax obligations.
The settlement follows an earlier deal in OSG’s bankruptcy case for the company to pay investors at least $15 million.
OSG emerged from bankruptcy last year, and in May filed for an initial public offering.