Malone, Charter Directors Agree to $87.5 Million Settlement (1)

John Malone and his former colleagues on Charter Communications Inc.’s board agreed to a $87.5 million settlement of claims the billionaire unfairly benefited from the $79 billion purchase of Time Warner Cable he helped finance.

The accord disclosed Friday in a Delaware court filing resolves an investor’s lawsuit against directors of the second-largest US cable company over their handling of the 2016 deal. The money will come from insurance covering directors named in the suit and will go into Charter’s coffers, not to the shareholder who filed the case.

Investor Matthew Sciabacucci accused the directors of allowing Malone, then ...