December 15 2007
Olathe, KS: (Dec-12-07) A class action lawsuit was brought against Sprint Corp. alleging unfair stock recombination. The lawsuit claimed that Sprint robbed billions of dollars from shareholders three years ago when it combined two stocks that tracked its wireless and traditional wireline business divisions. Sprint gave shareholders half a share of wireline stock for each wireless share they owned. Plaintiffs stated that this shortchanged the value of those stocks and that company officials had manipulated the wireline business to the detriment of the wireless business. As part of a settlement reached, Sprint Nextel agreed to pay $57.5 million to settle the litigation. Under the settlement print Corp.'s successor company will pay $10 million of the settlement, and Liability Insurance Carriers, Sprint's insurance company, will pay the remaining $47.5 million. The company denied the allegations, but settled to avoid the risks and costs of litigation.
[NEBRASKA.TV] Judge approves $57.5 million settlement in Sprint tracking stock case
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