Settlements reached in WorldCom civil suits
An AP newswire article, via MSNBC, reports that:
A federal judge Wednesday approved legal settlements that will return more than $6.1 billion to investors who lost money in the WorldCom accounting fraud.
The deals, approved by U.S. District Judge Denise Cote, will divide payments among approximately 830,000 people and institutions that held stocks or bonds in the telecommunications company around the time of its collapse in 2002.
Money for the payouts will come from a long list of defendants, including investment banks, auditing firms and former WorldCom directors.
The largest chunks are a $2.58 billion payment by Citigroup Inc. and a $2 billion payment by JPMorgan Chase & Co. Investors claim the companies, which were among those that underwrote or traded WorldCom securities, should have been aware of the fraud.A federal judge has approved settlements worth more than $6 billion in civil lawsuits related to the WorldCom accounting fraud.
posted by Fergie @ 9/21/2005 11:12:00 AM
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