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Sarbanes-Oxley News & Developments
WorldCom Proposes Boosting Penalty SettlementFormer shareholders burned by the WorldCom accounting fraud scandal receiving a revised settlement.
> > Former shareholders would receive $250 million in company stock under a revised settlement the bankrupt telecommunications giant -WorldCom- is hoping will win court approval. Shares in the newly organized company would be added to $500 million cash the SEC had suggested in an initial settlement.
The additional funds were added to the settlement to address concerns raised by US District Judge Jed S. Rakoff, who is overseeing the civil case.
Creditors of WorldCom support the revised proposal. However, competitors opposed the fine and have called for WorldCom to be liquidated as a way of relinquishing gains they contend were made fraudulently. Rival companies also claim that WorldCom is poised to emerge from bankruptcy at a severe competitive advantage.
As a part of its reorganization, WorldCom is asking the bankruptcy court for approval to change its name to MCI and establish new headquarters in Ashburn, VA.
Source: Silicon Valley article
Published:2003-07-05
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