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