Settlements: Reversal Of Fortune

Reversal Of Fortune

Poor Michael Milken. He's already paid $600 million in penalties and is 12 months into a 10-year prison sentence -- and he still has to worry about hundreds of lawsuits filed by investors claiming they were bilked by his schemes. To settle those charges, the fallen junk-bond king has now agreed to pay $500 million more in a deal that requires the approval of U.S. Judge Milton Pollack in Manhattan. Plaintiffs include the Federal Deposit Insurance Corporation, which alleges Milken helped undermine the savings and loan industry by persuading S&L chairmen to load up on junk bonds that collapsed when the...

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