Over forty individual actions have been brought by WorldCom bondholders pleading '33 Act claims based on alleged misrepresentations. Last November, the WorldCom court dismissed the claims brought by two Alaska plaintiffs involving a $6 billion bond offering in 1998 (Section 11 claim was time-barred) and a $2 billion bond offering in 2000 (no cause of action under Section 12(a)(2) for private placement). The 10b-5 Daily has posts discussing the decision and the solicitation dispute over the individual bondholder actions.
The defendants asked the court to dismiss similar claims brought in thirty-six of the cases. In an opinion issued January 20, Judge Cote granted the motions. The Associated Press has an article on the decision.Posted by Lyle Roberts at January 21, 2004 11:22 PM | TrackBack