In re Metromedia Fiber Network, Inc.
We obtained an $8.75 million settlement in this case involving securities fraud allegations.
In In re Metromedia Fiber Network, Inc., No. 01 Civ. 7353 (CLB) (S.D.N.Y.) (Brieant, J.), Labaton Sucharow, as co-lead counsel, brought securities fraud claims on behalf of its client, a substantial investor, against MFN and certain of its former management. Plaintiffs' essential allegation was that MFN made public statements that it had secured a "fully underwritten" loan from Citicorp USA, Inc. in the amount of $350 million to fund its network-building operations, when in truth Citicorp had committed to lend only a fraction of that amount, contingent on MFN's satisfying a number of financial requirements and loan commitments from other lenders. After significant discovery over a period of several years, plaintiffs uncovered substantial evidence to support their claims and, despite MFN's bankruptcy, secured a settlement of $8.75 million that was readily approved by the Court over several class member objections as fair, reasonable, and adequate.