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Corporations and securities brief ~ Sprint to purchase affiliate Unwired, settle lawsuit

[JURIST] Leading Monday's corporations and securities law news, Sprint [corporation website] has said it will buy its affiliate and litigant, US Unwired [corporate website]. In a press release, Sprint said it will purchase its Louisiana-based distributor for $1.3 billion and US Unwired will cease all pending legal action against Sprint. US Unwired had recently filed suit against Sprint in an attempt to block Sprint's announced purchase of Nextel [JURIST report]. Reuters has more.

In other corporations and securities law news...

  • The SEC is investigating film studio DreamWorks [corporate website]. The informal investigation concerns the studio's trading in its securities and the disclosure of its financial results on May 10, 2005. DreamWorks is also being sued by shareholders who allege the company inflated its financial forecast [Reuters report]. Reuters has more.

  • Fidelity Investments [corporate website] has reassigned its beleaguered equity trading chief. In a press release, the company said that Scott DeSano is being moved to Fidelity's strategic management unit. DeSano and Fidelity's equity trading unit have been under investigation from the SEC and NASD [official website] for possibly accepting gifts from outside sales brokers. Bloomberg has more.

  • As reported earlier on JURIST's Paper Chase, a judge has given preliminary approval for a settlement in WorldCom [JURIST report] shareholders' lawsuit against Bernard Ebbers [Wikipedia profile], the company's former CEO. The settlement provides for Ebbers, who was recently convicted of fraud [JURIST report] and awaits sentencing, to forfeit his $45 million estate to the shareholders [JURIST report]. MarketWatch has more.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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