Adelphia to Pay $715M in Charges

“John Rigas, who founded Adelphia, and the Rigas family will forfeit 95 percent of their assets in Adelphia as part of the settlement. According to the securities regulator, these assets are more than $1.5 billion in value. These assets will then be put into Adelphia, and Adelphia will pay $715 million in cash and stock to a fund designated for investors who lost billions of dollars when the company went bankrupt in 2002.

To avoid criminal prosecution, Adelphia also agreed to continue helping the Justice Department with its investigations. The Securities and Exchange Commission accused the company of excluding billions of dollars from its balance sheets, falsifying operating statistics and inflating earnings to meet Wall Street expectations. ”

Adelphia is still expected to sell to Time Warner and Comcast in a joint bid valued at $17.6 billion, so it looks like this may be a small slap on the hand afterall.

Read more at Audio Video Revolution

Source: CNN

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