WorldCom’s proposed $750 million settlement (a combination of cash and stock) with the SEC has been approved by Judge Rakoff of the S.D.N.Y.
Quote of note: “Rakoff said killing the company ‘would unfairly penalize its 50,000 employees, remove a major competitor from a market that involves significant barriers to entry, and set at naught the company’s extraordinary efforts to become a model corporate citizen.'”
CorpLawBlog has posted a persuasive critique of the settlement. No word on how the settlement will effect the pending securities class actions.
The 10b-5 Daily 