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

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posted on Jan, 6 2005 @ 10:37 AM
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.
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.

Please visit the link provided for the complete story.

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

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