Wednesday, April 13, 2011
Yesterday it was reported that enough investors had accepted the $180 million settlement offer by Securities America and its parent Ameriprise to make it happen. The settlement involves claims of investors who purchased private placements in Medical Capital and Provident Royalties that have been filed in arbitration and in a federal class action. Investors would receive approximately 45 cents on the dollar, up from the 10 cents offered in a previous settlement that a federal district court judge in Dallas refused to approve. Dealbook (Susanne Craig), Securities America Said to Reach $180 Million Settlement.
However, Investment News reports that the deal is still iffy -- specifically, if investors who collectively have $5 million in arbitration claims do not accept the terms. It is also subject to court approval. Securities America deal poised on a knife's edge