Eight-plus years after it began, the IPO Securities Litigation may finally be coming to an end. In federal court today in the SDNY, investors advised U.S. District Judge Shira Scheindlin that the parties remaining in the case have reached a $586 million settlement of lawsuits that alleged that numerous defendants rigged IPOs in the late 1990s, Bloomberg reports. The settling defendants reportedly include dozens of underwriters and stock issuers.
Howard Sirota of Sirota & Sirota, one of the lead lawyers in the case, stated that “when these cases were filed in 2001, no one would have believed that in 2009 Bear Stearns would be out of business, Lehman in bankruptcy, and names like Salomon and Merrill Lynch erased from the financial landscape. Under the circumstances, this settlement is the best available real-world alternative.” The settlement must still be approved by the court at a future hearing.