After a decade of litigation, Buchanan Ingersoll & Rooney is finally closing the book on a shareholder class action targeting the firm for the advice it gave Adelphia Communications Corp., the cable giant that went bust in a massive accounting and securities fraud scandal in 2002. Under a deal proposed in the case June 14, a class of Adelphia investors will walk away with $12 million as part of a $40 million insurance-funded settlement that Buchanan Ingersoll agreed to last year.
In the wake of Adelphia's collapse, shareholders represented by lead counsel at Abbey Spanier and Kirby McInerney accused Buchanan Ingersoll of approving misleading and false statements by Adelphia's board relating to the company's stock. Since 2005, they've been locked in mediation with Buchanan Ingersoll's lawyers at Clark Hill Thorp Reed under Daniel Weinstein, a retired judge of the San Francisco Superior Court. In a filing June 14 in U.S. district court in Manhattan, the plaintiffs lawyers announced that Buchanan Ingersoll will pay the class $12 million.
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