U.S. District Judge Shira Scheindlin of the SDNY has given preliminary approval of a proposed $586 million settlement in the IPO Securities Litigation case. As previously discussed here, on April 6, attorneys for investors advised Judge Scheindlin that the parties remaining in the case had reached a $586 million settlement of the lawsuits that alleged that numerous defendants rigged IPOs in the late 1990s. The settling defendants reportedly include dozens of underwriters and stock issuers.
Reuters reports that Judge Scheindlin’s ruling was made public on Thursday, and that a fairness hearing at which final approval on the proposed settlement may be granted is scheduled for for September 10. Scheindlin ruled that
in the current economic climate, ‘it is unlikely’ that the defendants would be able to withstand a bigger settlement.
‘It is therefore in plaintiffs’ best interests to resolve these actions, and quickly,’ she wrote.