A Collaboration with the University of Pittsburgh

Judge approves $2.6B Citigroup/WorldCom accounting scandal settlement

[JURIST] US District Judge Denise Cote of the Southern District of NY has approved a $2.6 billion settlement between Citigroup and
WorldCom (now MCI) investors, one of the biggest class-action lawsuits resulting from a series of corporate scandals. The class-action lawsuit accused Citigroup and other investment banks that underwrote WorldCom bonds of failing to conduct due diligence before bringing the securities to market. Citigroup must pay the settlement to WorldCom stockholders and bondholders; investors also will receive $51 million in interest. WorldCom emerged from bankruptcy protection earlier this year. Judge Cote called the settlement "historic". New York State Comptroller Alan G. Hevesi, the lead plaintiff in the case, released this statement. More information and materials on the WorldCom securities litigation is here. Reuters has more.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.