$468 million Dynegy Settlement wins approval
By Erik Ricasa
Published on July 22, 2005
The terms of the settlement include Dynegy paying out $400 million in cash and $68 million in stock to shareholders.
The class action lawsuit, led by the University of California, claimed that Dynegy misled investors regarding the company's finances. The suit alleges a $300 million loan from Citigroup was disguised as cash flow.
Citigroup and accounting firm Arthur Anderson were dismissed as defendants in the case a year ago but agreed to pay $5 million and $1 million, respectively.
After lawyer expenses and fees, the remaining $429 million will be divided among as many as 80,000 shareholders.
Former Dynegy tax executive Jamie Olis is serving 24 years for fraud and conspiracy charges stemming from the scheme.
The two others charged have both plead guilty to conspiracy and are currently waiting to be sentenced.
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