Arkansas Teacher Retirement System and Bernstein Litowitz Berger & Grossmann LLP, a New York law firm, announced Thursday that they have settled, for a total of $28.5 million, the securities class-action lawsuit against PharmaNet Development Group Inc. The class action, pending in the United States District Court for the District of New Jersey, is led by court-appointed lead plaintiff Arkansas Teacher Retirement System and is captioned In re SFBC International, Inc. Sec. Litigation, 06-cv-00165 (SRC).

PharmaNet was formerly known as SFBC International Inc.

Under the settlement agreement, the class will be paid $28.5 million, of which $24.5 million will be in cash and $4 million may be either in cash or in stock, at the election of the company. The settlement requires contributions from a number of different defendants, and specifically requires certain of the company's former directors, officers and employees to make a personal contribution towards the settlement of the class' claims.

"We are pleased to have reached a settlement of this securities class action on terms that provide a significant benefit to the class, while permitting the company and its new management to focus on the future. We believe that the personal contribution portion of this settlement sends a clear message that shareholders will insist that the directors, officers and employees of publicly traded companies live up to their responsibilities to act as vigilant guardians for the interests of the shareholders they represent," said Paul Doane, director of ATRS.