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(business) WorldCom directors to pay millions (from ATSNN)

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posted on Jan, 6 2005 @ 10:37 AM
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Ten former directors of WorldCom (now known as MCI), the telecommunications company whose bankruptcy was the largest in history, have agreed to pay $18 million of their own money to settle a class-action lawsuit by investors who lost hundreds of millions of dollars when the company collapsed in July 2002.

 



www.cbc.ca
NEW YORK - Ten former directors of WorldCom have agreed to pay $54 million, a third of it from their own pockets, to settle their portion of a lawsuit brought over the company's billion-dollar accounting scandal and collapse, according to newspaper reports Thursday.

If true, the unprecedented move could change how non-executive directors may be held accountable for the failure of a company on whose board they sit. Usually directors rely on company insurance to pay any fines or liabilities they incur in connectin with their position.




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$18 million is a drop in the bucket compared to what the investors losts. Seems more symbolic than anything else to me.

Related News Links:
news.bbc.co.uk




 
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