March 11, 2005

$4 Billion And Counting

Three 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. Deutsche Bank AG, WestLB AG, and Caboto Holding SIM Spa will pay a total of $437.5 million based on their roles as underwriters for WorldCom bond offerings.

Bloomberg reports that the premium over the formula used to establish Citigroup's settlement continues to rise as the case gets closer to trial. The current group of settling banks are paying a 13%-17.5% premium.

Taken together, the WorldCom securities class action settlements now total just under $4 billion.

Posted by Lyle Roberts at March 11, 2005 7:00 PM | TrackBack
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