As the businesses are growing, the world economies are flourishing. However, time to time, we often hear about these big cases being pushed to the courts against some of the big industry names.
From big businesses to small busiensses, almost everwhere there is something happening on the legal fronts. Copyright infrigments, patent infrigments, class action lawsuits, mortgae based security settlements, fraud investment settlement, and scandal settlement are some of the most talked about settlements we often witness.
Here, we have listed out 7 of the biggest legal settlements ever happened against commercial businesses:
1. Tobacco Master Settlement Agreement (MSA) – $206 billion
Initiated in 1988, this case was between 4 biggest US tobacco companies and the attorney generals of 46 states of US. In order to get the medical expenses for those people who had smoking-related illnesses, the states decided to sue the companies. This was the biggest legal settlement ever made as the companies had to agee to pay $206 billion over the next 25 years. The biggest class action lawsuit ever!
2. Enron Settlement – $7.2 billion
One of the biggest scandal security litigation ever fought in world history. Thousands of stakeholders lost their money when the energy trading company, Eron, got bankrupted and shut-down in 2001. Finally, after 7 years of tough fight, Eron had to pay $7.2 billion to its stakeholders who lost their money. A good commercial litigation lawyer can save you and a bad one can nail you!
3. WorldCom Settlement- $6.1 billion
Manhattan federal judge Denise Cote approved a settlement of $6.1 billion between WorldCom Inc. and more than 10 banks. Worldcon went bankrupt sort after the news of scandal down by Ebbers and Sullivan broke out. 11 billion worth of scam was done by them and because of that in 2002, the company went bankrupt and the shareholders lost their money.
4. Cendant Fraud Settlement- $3.2 billion
Cendant Corp. was sued by the investors over a fraud claim. They were not satisfied with the way company was disclosing its income and they came to a conclusion that had they known about the real income of the company, they would have invested less. This clear case of fraud by Cendant Corp. resulted them to settle for $3.2 billion to drop the charges by the stakeholders
5. Tyco International Scandal Settlement- $3 billion
Tyco international went in all form of deep waters when the investigation against their tax evasion of $1 million went on to break the news channels. Later, the investors sued the company and it agreed to pay $3 billion to settle the case. This was one of the most notorious cases of fraud by the top two duos of Tyco international that resulted in this class action lawsuit.
6. Apple-Nokia Patent Legal Settlement – $2 billion
In 2016, Nokia sues Apple for infringing some patents owned by NSN and Alcatel-Lucent (Nokia’s owned companies). After some fight, Apple settled the dispute out of courts for an undisclosed sum. However, reports suggest that Nokia got $2 billion for the settlement.
7. Countrywide Financial Corp Mortgage Settlement – $500 million
Countrywide Financial Corp. is to pay $500 million to their investors and shareholders to settle the case against them. According to the petition, the mortgage-backed securities by CFC misrepresented the quality of the investment.
