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Judge OKs $4.52 billion payout to WorldCom investors
Reuters ^ | 11-30-06 | staff

Posted on 11/30/2006 12:33:42 AM PST by xtinct

NEW YORK (Reuters) - The Manhattan federal judge overseeing the main class-action lawsuit over WorldCom Inc.'s collapse on Wednesday authorized the payment of up to $4.52 billion to aggrieved investors.

U.S. Judge Denise Cote of the U.S. Court for the Southern District of New York said the distribution should be made "as soon as practicable."

More than one dozen investment banks, including Citigroup Inc. and JPMorgan Chase & Co., agreed to pay about $6.15 billion to resolve allegations that they helped WorldCom sell bonds when they should have known the phone company was concealing its true financial condition.

The remaining balance from available settlement funds will continue to accrue interest until other claims are processed and disputed claims are resolved, Cote said in her four-page order.

WorldCom filed for Chapter 11 protection from creditors in July 2002 in what remains the largest U.S. bankruptcy. It emerged as MCI Inc., and was later acquired by Verizon Communications Inc..

(Excerpt) Read more at today.reuters.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: investors; restitution; worldcom
Score 1 for the investors!!!
1 posted on 11/30/2006 12:33:44 AM PST by xtinct
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To: xtinct

good ruling


2 posted on 11/30/2006 12:55:39 AM PST by 4rcane
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To: xtinct
"Score 1 for the investors"

I would guess that by the time the Lawyers take their "share", the investors will be lucky to get $.50 on the dollar.....

3 posted on 11/30/2006 1:58:37 AM PST by traditional1
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To: xtinct
Score 1 for the investors!!!

No, score 1 for the lawyers.

After their legal fees, court costs and every other conceivable "marked up" charge they could throw into the pot, the investors lose big-time.

4 posted on 11/30/2006 4:44:35 AM PST by DH (The government writes no bill that does not line the pockets of special interests.)
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To: xtinct

OK, so the judge agrees. I guess that implies that people from whom the money comes also agree. Or else.


5 posted on 11/30/2006 5:44:15 AM PST by the invisib1e hand (* nuke * the * jihad *)
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To: xtinct
Score 1 for the investors!!!

Score one for the enemies of personal responsibility. Both in the boardroom and with the Fidelity electronic trading accounts.

6 posted on 11/30/2006 5:45:12 AM PST by the invisib1e hand (* nuke * the * jihad *)
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To: xtinct
))))U.S. Judge Denise Cote ---- Nominated by William J. Clinton on April 26, 1994((((

How many judges did Willard appoint in '94? Seems like thousands?!?

'Series', every time I check it's almost like 'appointed by Clinton, 1994'.

7 posted on 11/30/2006 5:54:41 AM PST by Condor51 (Tagline Under Construction - Kindly Wear Your Hardhat)
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To: Condor51

Yeh that POS was very busy appointing his fellow LIBS. Their agenda was very clear even back then that if you cant get it done legally and ethically thru congress just do an end-around and appoint judges who will circumvent and sabotage the system. Pretty effective too!


8 posted on 11/30/2006 6:14:48 AM PST by Jazzman1 (l)
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To: Jazzman1
****Yeh that POS was very busy appointing his fellow LIBS. Their agenda was very clear even back then that if you cant get it done legally and ethically thru congress just do an end-around and appoint judges who will circumvent and sabotage the system. Pretty effective too!****

That idiot judge that declared our money illegal was ANOTHER 1994 appointee. Those sob's are all over like goose poop.

9 posted on 11/30/2006 6:33:13 AM PST by Condor51 (Tagline Under Construction - Kindly Wear Your Hardhat)
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To: traditional1
I would guess that by the time the Lawyers take their "share", the investors will be lucky to get $.50 on the dollar.....

I was once part of a class action suit. My payout was a check for $0.87, the lawyers got 16 million.

10 posted on 11/30/2006 6:48:12 AM PST by dearolddad
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To: dearolddad
I was once part of a class action suit. My payout was a check for $0.87, the lawyers got 16 million.

You done GOOD....usually, you get a coupon while the Lawyers take CASH!

11 posted on 11/30/2006 6:51:08 AM PST by traditional1
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