Posted on 01/05/2005 8:08:03 PM PST by wagglebee
NEW YORK (AFX) - Ten former outside directors for the former WorldCom Inc have agreed in principle to pay 54 mln usd, including 18 mln out of their own pockets, to settle their portion of a class-action lawsuit brought by bondholders and shareholders in the wake of the firm's accounting scandal, the Wall Street Journal reported, citing people familiar with the matter.
The remaining 36 mln usd will be paid by the directors' liability insurers, the sources were quoted as saying. Under the accord, the 18 mln usd to be paid by the former directors represents about 20 pct of their combined personal net worth, excluding their primary residences, retirement accounts and certain joint marital assets, it said. Some of the former directors will pay more than others, though the amounts that will be apportioned to each have not yet been determined, the report said.
A formal agreement is expected to be signed and presented for approval to a federal district judge in New York as early as Thursday, the newspaper said.
WorldCom emerged from Chapter 11 bankruptcy protection last year and has changed its name to MCI Inc.
The move comes less than two weeks before jury selection is due to get underway in the trial of Bernard Ebbers, WorldCom's former chief executive.
Ebbers is charged with securities fraud, conspiracy and causing the company to make false filings with securities regulators.
Who were they?
It doesn't say.
They knew, they knew....The Worldcom scam is bigger than public knowledge.
Ebbers is a crook and belongs in jail. Martha is a saint in comparison. Take the honcho of Global Crossing with him. And don't forget Ellen Hancock! There are a few more, but since Ebbers is free, what the heck.
And that reminds me, Sandy Berger has never been arrested.
Scams, crooks and thieves, each and every one!
And that reminds me, Sandy Berger has never been arrested.
And Dan Ratherbiased is still on the air!
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