Judge Approves Record WorldCom Settlement

[Mithras61]

PHILADELPHIA (Reuters) - A federal judge on Monday approved WorldCom Inc.'s (Other OTC:WCOEQ - news) plan to pay a record $750 million to settle fraud charges in its historic accounting scandal, clearing another hurdle for the beleaguered telecommunications company's emergence from bankruptcy.

U.S. District Judge Jed Rakoff in New York gave the green light to WorldCom's settlement with the Securities and Exchange Commission (news - web sites), which calls for the company to pay $500 million in cash and $250 million in new stock in the reorganized company.

The payout will be distributed to bondholders and shareholders who lost more than $200 billion in the company's downfall, which was triggered by its $11 billion accounting scandal. WorldCom agreed to sweeten the payout with stock after Rakoff raised questions about the settlement.

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http://story.news.yahoo.com/news?tmpl=story&cid=581&ncid=581&e=1&u=/nm/20030707/tc_nm/worldcom_settlement_dc

Looks like Sam's "heirs" at Worldcom are settling...

[samsingh]

1. does everyone who owned Worldcom stock get something?

.

[w4rma]

2. It would seem that everyone gets a little less than 0.4% of what they lost

and a little less than 7% of the amount of the "$11 billion accounting scandal".

U.S. District Judge Jed Rakoff in New York gave the green light to WorldCom's settlement with the Securities and Exchange Commission (news - web sites), which calls for the company to pay $500 million in cash and $250 million in new stock in the reorganized company.

The payout will be distributed to bondholders and shareholders who lost more than $200 billion in the company's downfall, which was triggered by its $11 billion accounting scandal. WorldCom agreed to sweeten the payout with stock after Rakoff raised questions about the settlement.

returned $750,000,000
lost $200,000,000,000
0.375%

returned $750,000,000
scandal $11,000,000,000
0.681818%