WorldCom Directors Kick In $20 Million To Settle Shareholder Suits

Eleven former WorldCom (now MCI) members of the board of directors have pledged to pay more than $20 million of their own funds to settle a class action lawsuit brought by shareholders of the embattled company's stock.

The directors' settlement is part of a total of more than $55 milion, with the balance being paid by insurance companies. The company's two lead investment banks have pledged an additional $4.6 billion, and estimates are that the total amount paid out in the suit will surpass $6 billion.

A settlement of that size means that many shareholders will receive a substantial portion of their loss in stock value when the company engaged in accounting fraud and spiraled into bankruptcy.

posted by Consumer Help Web Editorial Team at 9:04 AM |