Waste Management ($WM) has reached a settlement with investors to resolve claims that it misled investors about critical risks related to its acquisition of Advanced Disposal Services.
In 2019, Waste Management announced it would acquire Advanced Disposal for $4.9 billion and issued $3 billion in senior notes to help fund the deal. The company promised to complete the acquisition by July 14, 2020, or else redeem the notes at a premium. On June 24, 2020, WM disclosed a revised merger and that the notes would be redeemed at 101%, triggering losses for bondholders. After that, investors filed a suit.
April 14, 2019 – Waste Management announced plans to acquire ADS for $4.9B.
May 14, 2019 – WM issued $3B in senior notes with a special mandatory redemption clause.
Feb–June 2020 – WM assured investors that the deal would close on time, despite DOJ concerns.
June 24, 2020 – WM announced a revised deal and triggered early redemption. Notes dropped from 121 to ~103.
July 20, 2020 – Senior notes were redeemed at 101% of par.
October 23, 2020 – DOJ confirmed antitrust concerns and required $835M in divestitures.
June 9, 2022 – Investors filed a lawsuit over losses tied to the early redemption.
May 23, 2025 – Waste Management agreed to a settlement with investors.
To finance its $4.9B acquisition of Advanced Disposal Services, Waste Management issued $3B in senior notes in 2019, which included a clause requiring early redemption at 101% if the deal didn’t close by July 14, 2020.
Throughout early 2020, WM publicly stated the deal was progressing on schedule. Internally, however, the DOJ had already warned that the deal would require divestitures exceeding $200M, triggering renegotiations. Despite these known delays, WM continued to issue positive statements to the market.
On June 24, 2020, WM disclosed a revised merger agreement and informed investors that the notes would be redeemed early. The bond prices dropped sharply, causing losses for investors who had purchased them at a premium.
The DOJ later confirmed the merger raised significant antitrust concerns that required over $300M in asset sales.
Following this, in June 2022, investors filed a lawsuit alleging Waste Management misled them about the deal timeline and regulatory risks tied to the note terms.
What Can Investors Expect Now?
Waste Management ($WM) has reached a settlement with investors to resolve claims that it misled investors about critical risks related to its acquisition of Advanced Disposal Services.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.