Resideo Internal Reform Deal Over Spinoff Gets Court Approval

An agreement by Resideo Technologies Inc.'s board to spend $300,000 per year for five years on internal governance reforms at the Honeywell International Inc. home automation spinoff merits final approval, a federal judge in Minnesota ruled.

The decision, following Resideo’s $55 million class deal with investors that was finalized in 2022, puts an end to shareholder allegations that Honeywell designed the spinoff to offload failing business lines and billions of dollars in environmental liabilities. Honeywell, which was sued separately over the spinoffs of Resideo and transportation company Garrett Motion Inc., isn’t a defendant in the derivative suit.

The settlement is ...