Facts

NortonLifeLock Inc. (Norton), formerly known as Symantec Corporation, is a global provider of security, storage, and systems management solutions that offer organizations and consumers with secure management for their digital information.

Relator Lori Morsell filed a qui tam complaint against Norton, contending that Norton breached its obligations under its U.S. General Services Administration Multiple Award Schedule Contract (GSA Schedule Contract) and violated the False Claims Act. Specifically, Morsell asserted the company provided false, incomplete, and inaccurate information to the U.S. government regarding the discounts that Norton offered to other customers, and ultimately overcharged the U.S. government for its products and services.

Subsequently, Iron Workers Mid-South Pension Fund brought a shareholder derivative action against Norton and certain of the company's officers and directors.

PLAINTIFF'S CONTENTIONS: Plaintiff asserted claims for breach of fiduciary duty and unjust enrichment, contending that Norton failed to provide adequate oversight as to its obligations under the GSA Schedule Contract.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions.

Settlement Discussions

Over the course of several months, the parties engaged in good-faith negotiations regarding a potential resolution of the derivative action, which included participating in a number of telephonic conferences and exchanging multiple drafts of the settlement demand. The parties' negotiations ultimately culminated in the settlement agreement.

Result

The company agreed to implement and maintain reforms related to its Chief Compliance Officer, Audit Committee Charter, Government Contracts, and Management Disclosure Committee.