WorldCom institutional investors reach $651 million settlement

[JURIST] Investment banks and other defendants associated with the WorldCom accounting fraud [JURIST news archive] fallout have agreed to settle with a group of over 65 institutional investors for $651 million. The investors had opted out of a broader class action lawsuit previously brought that netted $6.1 billion [JURIST report] for WorldCom stock and bond holders. The settlement will compensate institutional investors, such as pension fund groups, who purchased WorldCom stocks and bonds from 1998 to 2001. WorldCom [MCI/WorldCom website] plunged into bankruptcy in 2002 after the accounting fraud at the company was revealed. Former WorldCom CEO Bernard Ebbers [JURIST news archive] was sentenced to 25 years in prison [JURIST news report] for his role in defrauding investors. Reuters has more.

 

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