There is extensive press coverage today of Citigroup’s $2.65 billion settlement in the WorldCom case. Some highlights:
Additional Settlements – The Wall Street Journal (subscrip. req’d) reports that the lead plaintiff has given the other defendant banks in the WorldCom litigation 45 days to settle under the same formula used by Citigroup. If the banks agree, they would pay about $2.8 billion to bond investors.
Allocation – The Associated Press reports that, according to the lead plaintiff in the case, Citibank’s payment will be allocated with $1.45 billion to bondholders and $1.2 billion to shareholders.
Attorneys’ Fees – The Wall Street Journal (subscrip. req’d) and the London Evening Standard report that the complex attorneys’ fees arrangement in the case may result in fees of around $140 million for the plaintiffs’ firms handling the litigation.