March 9, 2005

Four More WorldCom Banks Settle

Four more banks have agreed to a preliminary settlement of the claims brought against them as part of the WorldCom securities class action pending in the S.D.N.Y. ABN Amro, Mitsubishi Securities International, BNP Paribas Securities, and Mizuho International, who are accused of failing to engage in proper due diligence while acting as underwriters for WorldCom bond offerings, will pay a total of $428.4 million.

These are the latest in a string of settlements by defendant banks just prior to trial. While the earlier settlements were all calculated using a formula pioneered by Citigroup's settlement, Bloomberg reports that this group of banks is paying a 5%-13% premium.

Posted by Lyle Roberts at March 9, 2005 8:13 PM | TrackBack
Email this entry to:


Your email address:


Message (optional):