In Re Nucorp Energy Securities Litigation
Opinion
Opinion
Irving, J.
AMENDED MEMORANDUM DECISION AND ORDER
I. BACKGROUND
In the above-entitled consolidated actions, plaintiffs assert various federal claims, based primarily upon the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., and the Securities Exchange Act of 1934, 15 U.S.C. §§ 78a et seq., and various pendent state claims, based upon both statutory and common law theories, which arise from the sale of Nucorp securities. In March 1983, plaintiffs and defendants, under the guidance of Magistrate Harry R. McCue, began what would become an intensive series of settlement negotiations. In the summer of 1986, after Magistrate McCue had conducted over one hundred settlement or settlement-related conferences or hearings, plaintiffs and certain of the defendants executed and filed with the court a stipulation of settlement. The stipulation of settlement provides for a $41 million payment from the settling defendants — who consist primarily of the officers and directors of Nucorp — to the plaintiffs in exchange for a dismissal of all claims asserted against them.
Paragraph 20.L of the stipulation conditions the finality of the settlement upon entry of an order providing