Lucent Settles for $653 million

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Lucent’s bubble era antics cost the company plenty – forget nearly $225 billion in lost market capitalization, but lots of hard cash. There was plenty which was amiss at Lucent, as I point out in Broadbandits.

Lucent has reached a $653 million agreement to settle shareholder lawsuit. This is how it is going to be paid out –

* $315M in LU stock and cash.
* $161M in LU warrants.
* $5M for claims administration.
* $148M from LU’s insurance carrier.
* $24M from LU’s spin-off Avaya.

Wall Street Journal writes:

bq. Under the plan approved Friday, shareholders involved in 54 class-action suits against the Murray Hill, N.J., telecommunications equipment and services company will collect at least 15 cents in cash, stock and stock warrants for each share they purchased in the 15 months ended Dec. 21, 2000. Shareholders who bought the stock during that period and held onto it have suffered losses ranging from about $9 to $80 per share.

Much of the money, nearly $100 million is going to litigation attorneys who filed class action suits. That clearly is money out of the pocket of folks who lost money. Scum sucking bastards.

bq. Lucent software engineer Neal Borda asked that the fees be minimized where possible. “There’s a growing gap in what’s reasonable and fair in transactions between the rich and working class,” said Mr. Borda, who lost $30,000 purchasing Lucent shares for his 401(k) retirement savings plan. The fee, he added, “is a demoralizing slap in the face,” to Lucent employees who suffered through their company’s downturn.

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Allen Lindstrom

We were intimidated into investing our Savings Plan in Company stock by the constant reference of the need to be a “team player”. Those who did not meet these guidelines were shown the door.

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