Sprint Agrees To Settle With Shareholders
It emerged this week that two federal judges have approved a $50 million settlement
between Sprint Corp. and its shareholders. Several lawsuits were filed against Sprint over its aborted merger with ailing
telecoms firm WorldCom (now MCI), which filed for bankruptcy in the summer of
2002. The merger, which was announced in 1999, was scrapped in 2000, following opposition
from US and European regulators on antitrust grounds. However, the plaintiffs in the cases against Sprint argued that company officials
knew that there were likely to be regulatory objections to the move, and that
they recommended shareholder approval of the plan in order to boost the company's
share price and trigger the early vesting of $1.7 billion worth of insider stock
options. The settlement agreement was described by one of the judges ruling on the two
Kansas City-based lawsuits in question as "fair, reasonable and adequate". .
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