United States District Court, S.D. New York
January 13, 2005.
IN RE WORLDCOM, INC. SECURITIES LITIGATION. This Document Relates to: ALL ACTIONS.
The opinion of the court was delivered by: DENISE COTE, District Judge
On January 7, 2005, ten Director Defendants in the class action
in the Securities Litigation ("Settling Director Defendants")
executed a settlement agreement ("Agreement") with Lead
Plaintiff. The settlement is being funded by certain insurance
companies ("Insurers") and the Settling Director Defendants. The
Insurers have conditioned their participation in the settlement
on, among other things, this Court deferring its ruling on the
application for an order to advance defense costs to Director
Defendant Roberts ("Roberts"), an order staying Roberts' lawsuit
against the Insurers, and entry of the Agreement's bar order. On
January 7, the settling parties also requested an immediate
severance of the claims against the Director Defendants from
those to be tried on February 28.
At a conference on January 11, the Court advised the parties
that it would not approve a settlement conditioned on the Court
deferring a ruling, and would not sever claims against the
Director Defendants without giving preliminary approval to the
settlement since the Insurers' participation in the settlement
was conditional. Various parties have submitted written objections to the
Agreement's bar order and other provisions. Today, competing
scheduling proposals for expedited briefing of the preliminary
approval have been submitted. Having considered these
submissions, it is hereby
ORDERED that the settling parties shall give notice by January
18, 2005, as to whether there is any modification to paragraph 9
or any other provision of the Agreement.
IT IS FURTHER ORDERED that briefs in support of and in
opposition to preliminary approval of the Agreement shall be
served and filed on January 20, 2005. Reply briefs shall be due
January 24, 2005.
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