WM’s $30M lawsuit over ADS deal reaches final approval stage

Group 1 - The class action lawsuit related to WM's acquisition of Advanced Disposal Services (ADS) is nearing completion, with a judge granting final approval of a $30 million settlement [3][8] - The lawsuit alleges that WM misled investors regarding the timeline and financial risks associated with the ADS acquisition, leading to losses on senior notes issued for the deal [8] - WM completed the acquisition of ADS in October 2020, having initially announced the deal in April 2019 for $4.9 billion, and issued $4 billion in senior notes to finance the acquisition [4][3] Group 2 - The U.S. Department of Justice viewed the merger as a significant consolidation in the waste industry, requiring WM to divest up to $200 million in assets to address antitrust concerns [6] - WM later recognized the need to divest more than $200 million in assets to meet regulatory requirements, which contributed to delays in closing the merger by the initial deadline of July 14, 2020 [7][5] - WM has denied any wrongdoing in the lawsuit and stated that the settlement will not affect its financial or operational capabilities, as it will be covered by insurance [8]