Posted by : bpburnwal on Sep 27, 2003 - 07:39 AM General

MURRAY HILL, New Jersey (AP) - Lucent Technologies Inc. Tuesday received preliminary court approval for its $568 million settlement of about 54 shareholder suits alleging securities fraud.
Murray Hill-based Lucent said potential class members will be mailed notice letters by Oct. 7.

Claimants will have until March 31 to complete claim forms to receive a portion of the settlement.

The shareholder suits alleged the maker of telephone equipment engaged in financial fraud to sustain its growth during the telecom boom. Its share value has plummeted more than 95 percent from its peak.

Lucent's settlement - one of the largest of its kind - was announced March 27. The company denied any wrongdoing.

The settlement terms call for Lucent to pay $315 million in cash and stock, warrants valued at about $100 million and $5 million for claims administration.

The company's insurers agreed to pay another $148 million.

Lucent recorded a second-quarter charge of $420 million, or 11 cents a share, to cover the settlement.