Waste Management settles lawsuit for $26.8 million
Washington— Waste Management
Inc., the world’s largest trash hauler, agreed to pay $26.8
million to cover most of the costs of a settlement between four
former top executives and the Securities and Exchange Commission.
The lawsuit alleged that the company’s founder, Dean L.
Buntrock, was part of accounting fraud between 1992 and 1997.
The lawsuit was filed back in 2002.
The settlement, approved in U.S.
District Court in Chicago, ends the three-year-old SEC accounting
fraud suit. The SEC suit alleged that former chairman Dean L.
Buntrock and three other former executives failed to report expenses,
postponed costs and filed false financial statements for five
years, Waste Management said in a statement filed with the agency
Under the agreement, the company
will pay $17.1 million for Buntrock, whom the SEC accused in 2002
of leading a “massive” fraud that cost shareholders
$6 billion. Buntrock, who founded Waste Management in 1968 and
took the company public in 1971, also reportedly agreed to pay
a $2.3 million fine out of his own pocket.