WorldCom settlements have finally been approved:
NEW YORK – A federal judge Wednesday approved legal settlements that will return more than $6.1 billion to investors who lost money in the massive WorldCom accounting fraud.
The deals, approved by U.S. District Judge Denise Cote, will divide payments among approximately 830,000 people and institutions that held stocks or bonds in the telecommunications company around the time of its collapse in 2002.
The judge said the settlements were “of historic proportions.”
“Given the risks that would have been inherent in proceeding with the trial and any appeals, the settlement amount that will be allocated to the Securities Act claims is more than reasonable; it is remarkable,” the judge wrote.
Money for the payouts will come from a long list of defendants, including investment banks, auditing firms and former WorldCom directors.