Corporations and securities brief ~ Sprint-Nextel merger approved, but faces more litigation News
Corporations and securities brief ~ Sprint-Nextel merger approved, but faces more litigation

[JURIST] Leading Wednesday's corporations and securities news, shareholders of Sprint [corporate website] and Nextel [corporate website] approved Sprint's $36 billion bid to purchase Nextel. In a joint press release, the companies announced that 97 percent of voters approved of the merger. The deal still has several obstacles until it gains final approval, including resolving lawsuits from several affiliates of both companies and gaining regulatory approval. Earlier this week Sprint bought an affiliate that claimed the merger interfered with its contract [JURIST report] with Sprint, and now affiliate UbiquiTel [corporate website] has filed a lawsuit against Sprint. Reuters has more.

In other corporations and securities news…

  • As reported earlier on JURIST's Paper Chase, former WorldCom [JURIST coverage] CEO Bernard Ebbers [Wikipedia profile] received a 25-year sentence today for his role in an accounting scheme that defrauded WorldCom shareholders out of $2.2 billion. Ebbers was convicted of fraud in March [JURIST report]. Bloomberg has more.
  • Motorcycle manufacturer Harley-Davidson [corporate website] is under investigation by the SEC. The investigation follows a halt to production and shareholder lawsuits claiming the company greatly overvalued its stock. In a filing with the SEC, Harley-Davidson said, "in light of the pending shareholder litigation, the Company was not surprised by the SECÂ?s inquiry." Reuters has more.
  • The SEC may sue bankcard issuer Metris Companies [corporate website]. In a press release, Metris announced that it had received a "Wells Notice" from the SEC informing the Minnesota-based company that the staff of the SEC intend to recommend the agency file suit against Metris. The company also said that the notice relates to the company's reporting of loan loss allowances and its interest in securitirized loans. The Minneapolis/St. Paul Business Journal has local coverage.