NEW YORK -- Lawyers are mulling over a proposed settlement package of $1.5 billion that would end all civil suits against former "junk" bond financier Michael Milken, an amount that would include $500 million directly from him, sources said yesterday.
The total also would include an additional $400 million already paid by Milken into a special Securities and Exchange Commission settlement fund, part of the $600 million in fines and penalties he paid when he pleaded guilty to six felony counts in 1990.
But the federal judge in New York who has been pushing for a global settlement said that many obstacles remained.
The talks are aimed at settling the scores of lawsuits pending against Milken, many of them class actions, involving hundreds of individual plaintiffs. The suits include large claims against Milken by the Federal Deposit Insurance Corp., and by his former company, Drexel Burnham Lambert, which is in bankruptcy proceedings.