Alliance Data Systems agrees to settle lawsuit

Alliance Data Systems Corp., which manages credit-card loyalty programs, said Friday it agreed to settle class action claims filed against the company and its directors regarding its now-defunct acquisition agreement with Blackstone Group LP.

In exchange for the settlement, Alliance Data said it will make additional disclosures to stockholders in a supplemental proxy statement and pay $380,000 in attorney's fees and expenses.

The acquisition agreement was terminated in April.

Blackstone originally offered $81.75 per share for Alliance Data Systems, but in January said it couldn't close the deal because of objections from the U.S. comptroller of the currency, which regulates a bank owned by the company.

The litigation was originally four lawsuits filed against the company in May 2007, after the acquisition deal was announced.

The District Court of Dallas County, Texas, preliminarily approved the class action settlement on May 22. A hearing will be held on July 28 on whether to approve the proposed settlement.

The settlement class includes shareholders during the period from May 17 through Aug. 14, excluding Blackstone and its affiliates and Alliance Data's directors.