SEC Bypasses Fair Fund In Favor Of Claims Administrator

Law360, New York (February 27, 2006, 12:00 AM EST) -- The Securities and Exchange Commission has asked a district court to allow the agency to distribute the $250 million settlement reached with Qwest Communications to shareholders through a private distribution agent rather than through the SEC’s own Fair Fund system.

The plan stipulates that the $250 million will be combined with the settlement obtained in the private class action suit against Qwest and distributed by the consolidated class action’s claims administrator, Gilardi & Co.

The use of a private distribution agent will “minimize costs, maximize the...
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