A Collaboration with the University of Pittsburgh

Former WorldCom CFO Sullivan, two others settle with investors

[JURIST] As briefly noted yesterday in JURIST's Corporations and securities brief, WorldCom ex-CFO Scott Sullivan and two other executives have reached civil settlements over their roles in WorldCom's disastrous accounting fraud [JURIST news archive] that bankrupted the company. Sullivan - who famously testified against recently-convicted WorldCom founder Bernard Ebbers [Wikipedia profile] - and the executives David Myers and Buford Yates plead guilty to criminal charges and await sentencing next month. The judge ruled that Myers and Yates were unable to pay anything to the class, but Sullivan will be forced to sell his 10-bedroom mansion under construction in Florida, estimated to be worth $5 million, and give up his WorldCom 401(k). CNN 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.