OVERLAND PARK, Kan.-Sprint Corp. said it settled the securities class-action lawsuits related to its failed merger with WorldCom Inc. The settlement is subject to court approval.
Sprint agreed to pay $50 million as part of the settlement, most of which should be covered by insurance. Sprit intends to record a charge in the first quarter related to the settlement. According to Sprint, the settlement does not reflect an admission of liability and there has been no finding of any violation of federal securities laws.
The litigation is pending in federal district court in Kansas. A derivative case is pending in state court in Jackson County, Mo. The settlement of the derivative action includes enancing the company’s governance policies and practices, an agreement by the current board and senior managment to restrctions on options and stock and payment of plaintiff’s attorney’s fees in the form of 250,000 Sprint shares and 500,000 Sprint PCS shares for a total value of $5 million.
