After a year-long battle among the lead plaintiffs in the Halliburton securities class action (and the recusal of the original judge), the N.D. of Tex. has rejected a proposed $6 million settlement in the case. The court found that it was “not satisfied that the settlement proposed is fair, reasonable and adequate” and expressed concerns “about the manner in which settlement was reached.” The New York Times has an article on the decision.
Quote of note: “The judge noted in her opinion that the $6 million payment proposed by the settlement would have been reduced by administrative costs of $1.5 million, lawyers’ fees of $1.5 million and expenses of $117,239. Therefore, more than 800,000 potential claimants would share a settlement of less than $3 million. If all the potential class members submitted claims, the court calculated that an investor with 100 shares would recover about 62 cents.”
The 10b-5 Daily 