August 6, 2004

Charter Settles

Charter Communications, Inc. (Nasdaq: CHTR), a cable television provider headquartered in St. Louis, has announced the preliminary settlement of the securities class action (as well as related federal and state derivative actions) pending against the company in the E.D. of Missouri. The case was originally filed in 2002 and alleges that Charter utilized misleading accounting practices and issued false and misleading financial statements and press releases concerning its operations and prospects.

The settlement is for $144 million in cash and equity. Charter's insurance carriers will pay $64 million in cash and the "balance will be paid in shares of Charter Class A common stock having an aggregate value of $40 million and ten year warrants to purchase shares of Class A common stock having an aggregate value of $40 million." The St. Louis Business Journal has an article on the settlement.

Posted by Lyle Roberts at August 6, 2004 4:07 PM | TrackBack
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