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AMSTERDAM -- Ahold said yesterday it has reached a settlement with James Miller, the ex-c.e.o. of its former U.S. Foodservice subsidiary, which Ahold sold in July to American buyout firms Clayton Dubilier & Rice Inc. and Kohlberg Kravis Roberts & Co. for $7.1 billion. Under the settlement, Miller will pay the retail conglomerate $8 million.
Miller headed U.S. Foodservice during a well-publicized profit overstatement scandal that came to public attention in early 2003. The agreement encompasses Miller's bonuses and a "small part" of his salary as c.e.o., Ahold spokesman Walter Samuels told Bloomberg.
As a result of the agreement, the pending litigation between Ahold and James Miller will be terminated. Miller has not admitted liability.
Samuels referred to the Miller settlement as "the last important legal case for Ahold." In October the company settled with ex-c.e.o. Cees van der Hoeven and ex-c.f.o. Michiel Meurs, in which the men agreed to drop any severance-pay claims against Ahold and pay 5 million euros and over 2 million euros, respectively.