Adelphia Trust in $175 Million Settlement With Banks
1 min readBanks allegedly helped Rigas loot Adelphia, Settlement averts trial
Reuters
NEW YORK, Oct 22 (Reuters) – More than 20 banks have agreed to pay $175 million to settle a lawsuit by an Adelphia Communications Corp trust that accused them of helping the cable television provider’s founder loot the company.
The proposed settlement was filed this week in Manhattan federal court. It resolves claims that the banks were grossly negligent and breached their fiduciary duties by arranging financings that allowed Adelphia founder John Rigas and his son Timothy to defraud the company.
Settling defendants include Bank of America Corp (BAC.N), Citigroup Inc (C.N), Credit Suisse Group AG (CSGN.VX), Deutsche Bank AG (DBKGn.DE), JPMorgan Chase & Co (JPM.N), Toronto Dominion Bank (TD.TO), Wells Fargo & Co (WFC.N) and others.
The settlement averts a trial slated to begin on Oct. 25.
What about all that stock employees were talked in to buying, it is worth nothing!