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Ex-WorldCom execs said to reach deal
Report: Ex-CFO Sullivan, 2 others reach settlement of civil shareholder suit against them.
July 26, 2005: 6:35 AM EDT

NEW YORK (CNN/Money) - Three former top executives at bankrupt telecom WorldCom, including its ex-chief financial officer, have agreed to settle a class-action lawsuit stemming from accounting fraud that brought down the company, according to published reports Tuesday.

The Wall Street Journal reported that ex-CFO Scott Sullivan, as well as former controller David Myers and former accounting director Buford Yates Jr., have reached a settlement of civil suits. Details of the deal were not available, but U.S. District Court Judge Denise Cote has scheduled a hearing on the agreement Thursday.

The lawyer for the lead plaintiff, the New York State Common Retirement Fund, didn't return calls to the paper seeking comment on the reported settlement.

In June, former WorldCom Chairman and CEO Bernie Ebbers agreed to sell most of his assets in a settlement with investors worth about $45 million. In July he was sentenced to 25 years in prison for his role in the fraud.

Sullivan, Myers and Yates have all pled guilty to criminal charges and are set to be sentenced next month.


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