Judge Rejects Appeal of Adelphia Settlement

A judge turned down an attempt by creditors of Adelphia Communications Corp. to throw out a lawsuit settlement because it put them in line for payments behind shareholders.

Greenwood Village, Colo.-based Adelphia last year agreed to settle the suit with U.S. regulators by creating a $715-million fund to repay investors who lost millions when company founder John J. Rigas orchestrated an accounting fraud.

U.S. District Judge Lewis Kaplan in New York said the settlement properly allowed fraud victims to be paid first.