Morrison Knudsen Settlement Approved

U.S District Judge Edward Lodge on Friday essentially approved a $62 million settlement of Morrison Knudsen Corp. shareholder lawsuits accusing the company of mismanagement while William Agee was chairman.

The agreement, put together over the summer and first made public in September, splits $43.8 million in cash and about 3 million shares of stock among about 20,000 stockholders and their attorneys at about a dozen law firms nationwide.

Lodge’s decision allots $75,000 each from the settlement fund to the 18 class-action representatives in the case. It also handed attorneys about one-quarter of the settlement, or $15.9 million.

With the approval, shareholders will not be allowed to bring more suits contending MK misrepresented its business prospects in 1993 and 1994 to potetial buyers. The first suits appeared after MK announced an unexpected $40.5 million loss in July 1994.

The company’s stock dropped from a high of nearly $30 a share in April 1994 to about $5 a share early this year.