CNN/Money  

Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

graphic
News > Technology
graphic
WorldCom in $500M settlement
Deal with SEC amounts to largest ever for public company; matter back in court June 11.
May 19, 2003: 7:32 PM EDT

NEW YORK (CNN/Money) - WorldCom agreed Monday to settle accounting fraud charges by paying $500 million to investors, but a federal judge presiding over the matter said he wants more time before approving the largest fine ever levied against a public company.

U.S. District Court Judge Jed Rakoff said several issues about the fraud committed at WorldCom, which has changed its name to MCI, need to be addressed before he signs off on the deal between the long-distance company and the Securities and Exchange Commission.

Click here to read the WorldCom judgment

In addition to Rakoff's approval, the settlement needs the approval of the bankruptcy judge overseeing MCI's case.

Last June, WorldCom announced what went on to become $11 billion in accounting irregularities that led to the largest bankruptcy in U.S. history.

The matter is scheduled for a hearing in Judge Rakoff's Manhattan courtroom on June 11.

For more on the penalty, click here

Rakoff Monday said he wants more information on the fraud and who will benefit from the settlement.

WorldCom expects to emerge this year from a $103 billion bankruptcy that led to the indictment of Scott Sullivan, the company's former CFO. Sullivan, accused of hiding expenses, has denied any wrongdoing  Top of page




  More on TECHNOLOGY
Why Beyoncé might just be 'a black Bill Gates' after all
Mark Zuckerberg and wife announce daughter's Chinese name
Today is the biggest day for Super Bowl ads
  TODAY'S TOP STORIES
Clinton won't rule out Wall St. Treasury Secretary
Stock market's terrible start to 2016 just got worse
How to get free food from Chipotle




graphic graphic