A settlement of the long-running IPO Securities Litigation may be close, Bloomberg reports. The settlement is reportedly in the “final stages of negotiations” and is likely to be for less than $700 million, “less than a quarter of what a plaintiffs’ attorney said the banks proposed at one point, and a fraction of the $12.5 billion originally sought by investor lawyers after the collapse of the bubble in technology stocks” according to Bloomberg.
Plaintiffs in the case are the shareholders of hundreds of companies that went public, who claim that a host of underwriters manipulated the IPO market for tech firms.
The settlement must still be approved by U.S. District Judge Shira Scheindlin of the SDNY, who has reportedly been informed that an agreement has been reached in principle. Several high-profile and high-dollar settlements previously reached in the case were undercut when the Second Circuit vacated the lower court’s certification of the proposed class. Plaintiffs’ lawyers had sought to represent millions of IPO participants.