IPO Settlements Could Mean Payday For Issuers

Law360, New York (April 24, 2006, 12:00 AM EDT) -- The Initial Public Offering class action litigation may not only end up paying off for the plaintiffs in the securities suit, but may actually end up benefiting the companies whose IPOs sparked the lawsuit in the first place.

If the total recovery in the suit exceeds $5 billion, which, given the recent $425 million J.P. Morgan settlement, is increasingly likely, the 309 companies that issued the IPOs in question may actually receive compensation.

In 2003, the issuers of the IPOs, mostly Internet start-up companies like thestreet.com,...
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