Worldcom guys PAY to settle suit - PeachParts Mercedes-Benz Forum

#1 01-06-2005, 08:39 AM

While Fannie Mae CEO walks away with 124 Million after misplacing 9 BILLION.

WorldCom former outside directors to pay 54 mln usd to settle suit - report

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 (NASDAQ: MCIP - news) .
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.

boneheaddoctor · #2 01-06-2005, 08:52 AM

Personally I think the Worldcom Directors should have been required to donate 3 organs NOW, each person of course....in addition to the fines.

I got shafted out of $38,000 from that mess........I want my pound of flesh......................