Union Reaches $2.5M Settlement With RHI Over 2008 IPO

Law360, New York (June 3, 2011, 2:01 PM EDT) -- A United Food & Commercial Workers Union local asked a New York federal judge Thursday to sign off on a $2.5 million cash settlement in its fraud class action against RHI Entertainment Inc. over the production company’s 2008 initial public offering.

The union's Local 655 and other plaintiffs claim the New York-based company, which tiptoed through a quick Chapter 11 bankruptcy earlier this year, hyped a $14-per-share IPO in 2008 while hiding information about a decline in demand for its made-for-television movies and miniseries.

The proposed...
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