TransDigm Ends Investor Suit Over ‘Staggering’ Board Pay Claims

TransDigm Group Inc. and its senior leaders have reached a deal to end investor litigation over claims that the aerospace manufacturer overpaid members of its board and management by “staggering” amounts, according to court filings in Delaware.

The agreement would restructure “dividend equivalent payments” on vested but unexercised stock options so they’re recognized as a reduction in the strike price, rather than paid out in cash. The move would save the company $23.8 million, according to settlement filings in Delaware’s Chancery Court.

The pact also provides $2.8 million to counsel for the TransDigm investor who led the case, plus a ...