Digex Shareholders Sued to Enjoin Merger in 2000

CASE SETTLED FOR $15 MILLION IN CASH, $165 MILLION IN STOCK, PLUS OTHER BENEFITS

In this lawsuit, minority shareholders of Digex, Inc. sued to enjoin MCI WorldCom's planned acquisition of a controlling interest in Digex through a merger with Intermedia Communications, Inc., the majority shareholder. In a settlement approved by Delaware Chancery Court on April 6, 2000, a fund consisting of $165 million in MCI Worldcom stock and $15 million in cash was secured for Digex shareholders, as well as non-cash benefits valued at $450 million.