Sarbanes-Oxley News & Developments
WorldCom: $750 Million SettlementA $750 million settlement of civil fraud charges made by the Securities and Exchange Commission on investors` behalf was approved by a bankruptcy judge.
> > WorldCom will pay $500 million in cash and $250 million worth of stock if the company emerges from bankruptcy with the help of its reorganization plan due on September 8.
Under the guidelines of the deal, shareholders and creditors who acquired WorldCom stock during the three-year period when the fraud took place and held it through June 25, 2002 -- the day the company revealed its accounting problems -- will be eligible for payment from the settlement.
The Sarbanes-Oxley Act makes now possible the ability to pay fraud victims from the settlement penalty; previously, those payments went to the U.S. Treasury.
Source: Hoover`s
Published:2003-08-13
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