July 8, 2003

WorldCom Settlement Update II

WorldCom's proposed $750 million settlement (a combination of cash and stock) with the SEC has been approved by Judge Rakoff of the S.D.N.Y. The Associated Press report can be found here.

Quote of note: "Rakoff said killing the company 'would unfairly penalize its 50,000 employees, remove a major competitor from a market that involves significant barriers to entry, and set at naught the company's extraordinary efforts to become a model corporate citizen.'"

CorpLawBlog has posted a persuasive critique of the settlement. No word on how the settlement will effect the pending securities class actions.

Posted by Lyle Roberts at July 8, 2003 12:19 AM | TrackBack
Email this entry to:

Your email address:

Message (optional):