CASE HEADLINES: 

 

December 20, 2013: Fourth Distribution of Settlement Fund (including proceeds of supplemental settlement with Arthur Andersen) made in accordance with Courtís Prior Orders.


December 14, 2012: Judge Cote Grants Final Approval to Settlement of Contingent Payment Claim with Arthur Andersen LLP. Click here to view the Courtís Judgment approving the Settlement.  


October 2, 2012: Judge Cote Preliminarily Approves Proposed Settlement of Contingent Payment Claim with Arthur Andersen LLP and Schedules Settlement Hearing for December 14, 2012. Click here to View the Court's order. Click here to view the Notice of Proposed Settlement of Contingent Payment Claim with Arthur Andersen LLP.   


September 18, 2009: Judge Cote Grants Approval of the Final Distribution Plan. Click here to View the Court's order.   


January 23, 2008: Judge Cote Grants Approval of Second Distribution of Net Settlement Fund. Click here to View the Court's order.  


December 27, 2006: COURT GRANTS APPROVAL OF INITIAL DISTRIBUTION OF NET SETTLEMENT FUND; INITIAL DISTRIBUTION OF FUNDS MADE.  Click here to read more.


September 21, 2005: COURT GRANTS FINAL APPROVAL OF ALL SETTLEMENTS AND THE PLANS FOR ALLOCATING THE SETTLEMENT PROCEEDS.

The Judgments approving the Settlements, Orders approving the Plans of Allocation, and Order Approving the Modified Supplemental Plan of Allocation are described below and are available through the links below. Click here to read more.


July 26, 2005: LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND ANNOUNCES SETTLEMENTS WITH FORMER WORLDCOM EXECUTIVES. PENDING COURT APPROVAL, SETTLEMENT MONIES RECOVERED FOR THE INVESTOR CLASS NOW TOTAL MORE THAN $6.13 BILLION. Click here to read more.


June 30, 2005: FORMER WORLDCOM CEO EBBERS WILL HAND OVER MOST OF HIS PERSONAL ASSETS TO WORLDCOM SHAREHOLDERS AND BONDHOLDERS. Click here to read more.


April 25, 2005: AFTER FOUR WEEKS OF TRIAL, LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND ANNOUNCES $65 MILLION SETTLEMENT WITH FORMER WORLDCOM AUDITOR AND SOLE REMAINING DEFENDANT ARTHUR ANDERSEN. Click here to read more.


March 21, 2005: LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND ANNOUNCES SETTLEMENT WITH FORMER WORLDCOM CHAIRMAN BERT ROBERTS. FINAL DIRECTOR DEFENDANT TO PAY FROM HIS OWN POCKET. Click here to read more.


March 18, 2005: LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND REVIVES HISTORIC SETTLEMENT, FORMER WORLDCOM DIRECTORS TO PAY FROM OWN POCKETS. Click here to read more.


March 16, 2005: LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND ANNOUNCES $2 BILLION SETTLEMENT WITH J.P. MORGAN CHASE. Click here to read more.

Click here to view an itemized breakdown of these settlements.


March 10, 2005: LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND ANNOUNCES $325 MILLION SETTLEMENT WITH DEUTSCHE BANK. Click here to read more.


March 10, 2005: LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND ANNOUNCES SETTLEMENTS TOTALING OVER $112 MILLION WITH WORLDCOM BOND UNDERWRITERS WEST LB AND CABATO. Click here to read more.


March 9, 2005: LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND ANNOUNCES SETTLEMENTS TOTALING OVER $428 MILLION WITH ABN AMRO, MITSUBISHI, BNP PARIBAS, AND MIZUHO. Click here to read more.


March 4, 2005: LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND ANNOUNCES SETTLEMENTS TOTALING OVER $100 MILLION WITH LEHMAN BROTHERS, GOLDMAN SACHS, CREDIT SUISSE FIRST BOSTON, AND UBS WARBURG. Click here to read more.


March 3, 2005: LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND ANNOUNCES $460.5 MILLION SETTLEMENT WITH BANC OF AMERICA. Click here to read more.


 

February 18, 2005: TRIAL DATE CHANGED; JURY SELECTION TO BEGIN ON MARCH 17, 2005; LEAD PLAINTIFF EXPECTS TO PRESENT CLASS' OPENING STATEMENT TO THE JURY ON THE MORNING OF TUESDAY, MARCH 22.


November 5, 2004: COURT GRANTS FINAL APPROVAL OF $2.575 BILLION CITIGROUP SETTLEMENT.

PROOF OF CLAIM FORMS MUST BE SUBMITTED BY MARCH 4, 2005. Click here to read more.


 

 

COURT GRANTS APPROVAL OF INITIAL DISTRIBUTION OF NET SETTLEMENT FUND; INITIAL DISTRIBUTION OF FUNDS MADE

On November 29, 2006, United States District Court Judge Denise Cote granted approval of the initial distribution of 75% of the net settlement funds to Authorized Claimants who filed claims by the extended June 15, 2006 deadline for doing so. The distribution was made in mid-December 2006. Claims submitted after June 15, 2006 or that are subject to disputes will be considered by the Court in a further motion to be filed, on notice to such Claimants, within the next few months. Notices were published in the NYT, WSJ, PR Newswire, Dow Jones and Bloomberg. Click here to view the Court's November 29, 2006 Order. Click here to view the Notice of Initial Distribution of Net Settlement Fund.

BACK TO TOP


 

 

COURT GRANTS FINAL APPROVAL OF ALL SETTLEMENTS

On September 21, 2005, United States District Court Judge Denise Cote granted final approval of all of the settlements reached in the WorldCom Securities Litigation. The total recovery for the Class stands at $6.13 billion, plus interest. The settlements that were approved by the Court were with:

The Underwriter Defendants in the total amount of $3,427,306,840 (which is in addition to the $2,575,000,000 achieved in the settlements with the Citigroup Defendants, which was approved in November 2004). To view the Judgment approving the Underwriter Settlements, click here.

The Director Defendants in the total amount of $60,750,000, consisting of $24,750,000 from the Director Defendants personally and $36,000,000 from the entities that provided liability insurance for WorldCom,s directors and officers. To view the Judgment approving the Director Settlement, click here.

Arthur Andersen LLP in the cash amount of $65,000,000, plus certain contingent payments and other confidential protections for the Class in the event of a bankruptcy proceeding involving Andersen. To view the Judgment approving the Andersen Settlement, click here.

The Executive Defendants, including former CEO Bernard Ebbers and former CFO Scott Sullivan in the cash amount of more than $10,000,000 (which included proceeds from the sale of Sullivan,s house), plus approximately two-thirds of the proceeds from the sale of Ebbers, remaining assets (including his house and interests in other business entities). To view the Judgment approving the Ebbers Settlement, click here; for the Sullivan Settlement, click here; and for the Myers and Yates Settlements, click here.

Describing the settlements reached in the case, the Judge had stated at the final settlement hearing on September 9, 2005:

The Citigroup Settlement: "The Citigroup defendants, whose settlement was the subject of the last fairness hearing, fought vigorously until virtually the close of fact discovery. They used a myriad of arguments to try to separate what they termed the analyst claims from the rest of this litigation, and only settled with the lead plaintiff on the eve of argument before the Second Circuit on the issue of class certification. As noted at our last fairness hearing, the settlement reached there was historic by any measure.

The Underwriter Settlements: "The underwriter defendants continued their fight, not settling until the eve of trial this year. If they had proceeded to trial, they would have been formidable opponents. They faced strict liability claims, and the trial would have been an epic battle over the quality of the due diligence performed for the 2000 and 2001 offerings.

"Lead counsel had to be prepared to fight that battle, and from what I observed and learned through summary judgment practice, lead counsel had worked hard already to prepare for that fight. The settlements reached with the underwriter defendants were every bit as historic as those reached with the Citigroup defendants. When combined with the recovery bondholders received through the bankruptcy proceedings, bondholders will be recovering a very substantial percentage of their losses through this litigation.

"Perhaps, even more significantly, the settlements reached with the Citigroup and underwriter defendants have the potential to improve the performance of due diligence in America by all investment bankers. Only history will tell us whether this litigation did enhance the performance of the capital markets by instilling new confidence in registration statements and in the stock market as a whole. It is certainly to be hoped that any increase in the cost of performing meaningful and thorough due diligence will ultimately be judged as well worth the expenditure and judged to be so not just by investors but by the industry too.

The Director Defendant Settlement: "Much has been spoken and written about the settlements reached with the directors in this case and the requirement that they contribute to the settlement from their own pockets based on their net worth. What is clear is that the settlement with the director defendants raised money from the directors that it is likely that lead plaintiff would not have been able to obtain through a settlement with the excess insurers who provided the D&O policies for the WorldCom directors. The excess insurers believe that the policies were null and void, and only through skillful and prolonged negotiations conducted by the settlement judges, counsel for the director defendants and, of course, to some extent, lead counsel, were the parties able to achieve the contribution from the excess insurers that paid essentially half of all the insurance proceeds into the settlement fund.

The Settlements with Arthur Andersen LLP and the Executive Defendants: "Andersen, as we know, went to trial. Lead plaintiff presented the jury with an explanation of an accounting fraud that spanned more than three years, introducing the jury to complex accounting concepts and educating them about the telecommunications market as it existed at the millennium, the particular business challenges faced by WorldCom, the methods used by a few within WorldCom to manipulate the company's books and records and the auditing and accounting standards that were at stake in the litigation. With just two defense experts left to testify, Andersen settled. As was true with the settlements with the four WorldCom executives that followed the trial, the particular challenge in settling with Andersen was assessing its financial condition and how much it could contribute to the settlement. With Andersen and each of the executives, the lead plaintiff obtained all that anyone could.

BACK TO TOP

COURT FURTHER APPROVES PLANS FOR ALLOCATION OF SETTLEMENT PROCEEDS

The District Judge also approved Lead Plaintiff,s proposed Plans of Allocation for the Settlements with the Underwriter Defendants, Arthur Andersen, the Director Defendants and the Executive Defendants (including former CEO Bernard Ebbers and CFO Scott Sullivan), and, with certain modifications, the Supplemental Plan of Allocation. Click here to view the Order Approving Modified Supplemental Plan of Allocation. To view the Orders approving the Plans of Allocation for the Underwriter Settlements, click here, and for the Director Defendants, Andersen, Ebbers and Myers Settlements, click here.

The Supplemental Plan of Allocation was modified from the plan originally proposed in three respects:

First, investors who purchased or acquired WorldCom Securities during the Class Period and sold or redeemed them prior to January 29, 2002, and suffered a loss, will be able to receive some recovery in these settlements. However, only a small portion of any such loss in the prices of those Securities will be compensated in light of the facts that (a) the risk of proving that any decline in the price of such Securities was attributable to and caused by the acts of Defendants is so significant, (b) the prices that such investors were able to obtain in the sale of such Securities exceeded the prices that investors were able to obtain in the sale of similar Securities on and after January 29, 2002, and (c) the inflation in the market prices of WorldCom Securities, as determined by Lead Plaintiff,s expert, was increasing from the start of the Class Period through January 28, 2002 and, therefore, such investors sold their WorldCom Securities when the inflation allegedly attributable to Defendants, acts was greater than the inflation at the time of such Class Members, purchases of WorldCom Securities. The methodology for determining the Recognized Amounts for each WorldCom Security which was held as of June 25, 2002, the last day of the Class Period or sold or redeemed during the period January 29, 2002 through June 25, 2002 is set forth in paragraphs 18-25 of the Supplemental Plan. For those WorldCom Securities which were sold or redeemed on or before January 28, 2002, the Recognized Amounts for each such WorldCom Security shall be 10% of the Recognized Amount that would be calculated for each such Security if it had been sold during the period January 29, 2002 through June 25, 2002.

Second, investors who purchased Intermedia Communications, Inc. 13.5% Series B Redeemable Exchangeable Preferred Stock due 2009 ("Intermedia 13.5% Preferred stock), after the acquisition of Intermedia by WorldCom on July 1, 2001, will be eligible to participate in the distribution of the Settlement Funds, according to a formula similar to the formulas provided in the Supplemental Plan for Intermedia Series D, E and F Preferred stock.

Third, with respect to investors who purchased bonds issued in WorldCom,s May 2000 and May 2001 bond offerings, and held those bonds through the effective date of WorldCom,s plan of reorganization, Paragraphs 18(b)(ii) and 19(b)(ii) of the Supplemental Plan was modified to provide that for Notes redeemed pursuant to WorldCom,s plan of reorganization, the aggregate value of consideration received was equivalent to $302 per $1,000 face amount, which will be used to represent the "sale price at redemption.

BACK TO TOP


 

 

LEAD PLAINTIFF NEW YORK STATE COMMON RETIREMENT FUND ANNOUNCES SETTLEMENTS WITH FORMER WORLDCOM EXECUTIVES. PENDING COURT APPROVAL, SETTLEMENT MONIES RECOVERED FOR THE INVESTOR CLASS NOW TOTAL MORE THAN $6.13 BILLION.

July 26, 2005 - New York State Comptroller Alan G. Hevesi, the Lead Plaintiff in the WorldCom Securities Class Action Litigation, today announced that he has reached settlements with former WorldCom executives Scott Sullivan, David Myers, and Buford Yates, the three remaining defendants in the WorldCom Securities Class Action in which Hevesi serves as Lead Plaintiff. Sullivan is WorldCom,s former chief financial officer; Myers is WorldCom,s former controller; and Yates is WorldCom,s former chief of accounting. Each of these defendants pleaded guilty to crimes arising from the WorldCom scandal and cooperated with the U.S. Attorney,s Office in the prosecution of former WorldCom chief executive officer Bernard Ebbers. The three men are scheduled to be sentenced by U.S. District Judge Barbara S. Jones in early August.

The settlement with Sullivan requires that he and his wife give Hevesi the right to sell the estate mansion that the Sullivans had been building in Boca Raton, Florida. That house, while not yet completed, is presently on the market for sale for $10.9 million. The sales advertisement for the estate can be viewed at http://www.premierestateproperties.com.

The sale of the house is subject to a number of liens. After brokers, commission and satisfaction of those liens (some of which may be challenged by Hevesi), it is expected that approximately $4 million will be available for victimized investors. 85.5% of the net sale proceeds will be distributed to investors in the Securities Class that Hevesi represents; 9.5% of the net proceeds will be distributed to former WorldCom employees represented in the ERISA class action; and 5% will be set aside to fund settlements that Sullivan may reach in other litigation arising from the WorldCom debacle.

In addition to surrendering the house in Boca Raton, Sullivan will be required to liquidate what remains in his WorldCom employee 401(k) account, and to pay those proceeds to Hevesi before Sullivan is sentenced on August 11. After payment of taxes and penalties, the net proceeds to the victims from this account should be approximately $200,000. Hevesi has agreed that 10% of the net proceeds from the 401(k) account will be distributed to the ERISA class; the remaining 90% will be distributed to the Securities Class represented by Hevesi.

The settlement with Sullivan was reached after extensive analysis by the Common Retirement Fund, its outside counsel, and representatives of the U.S. Attorney,s Office of the financial capabilities of the Sullivans, as well as Mrs. Sullivan,s extensive medical history and anticipated needs.

As was the case with the recent Ebbers settlement, Lead Counsel at Bernstein Litowitz Berger & Grossmann LLP and Barrack, Rodos & Bacine have agreed to seek no fee from the Sullivan settlement.

The Common Retirement Fund, its outside counsel, and representatives of the U.S. Attorney,s Office also devoted considerable time and effort to evaluating the sworn financial statements and additional financial information provided by former WorldCom executives David Myers and Buford Yates and concluded that each is unable to pay any settlement to the Class. Accordingly, the settlement requires no payment from these two defendants.

With these three settlements, each of the defendants in the WorldCom Securities Class Action has settled with Hevesi. Taken with the anticipated proceeds from the Sullivan settlement, the total recovery obtained for the Class exceeds $6.136 billion, with $18 million to $28 million in additional money expected to be recovered from the sale of assets covered by the recent Ebbers, settlement.

The settlements with Sullivan, Myers and Yates must be preliminarily approved by Judge Denise Cote, who has scheduled a hearing for this Thursday, July 28, at 11 a.m. The final approval hearing for these settlements, as well as the settlements reached earlier this year with WorldCom,s former auditors and directors, and certain of WorldCom,s former underwriters (including JPMorgan Chase and Bank of America) is scheduled for September 9, 2005 at 2:30 p.m.

Investors are reminded that they have until August 26, 2005 to submit a claim form if they have not already done so.

BACK TO TOP


 

 

June 30, 2005 - New York State Comptroller Alan G. Hevesi, the lead plaintiff in the WorldCom Securities Class Action Litigation, and U.S. Attorney for the Southern District of New York David N. Kelley, who has been conducting the criminal prosecution of former WorldCom CEO Bernard Ebbers, have reached a settlement with Ebbers of claims against him flowing from the WorldCom Securities Litigation, Hevesi announced today. The settlement provides that most of the personal assets of Ebbers that could have been subject to a fine or restitution in the criminal case will instead flow directly to victimized WorldCom shareholders and bondholders.

"Mr. Ebbers was the person most responsible for the biggest corporate fraud in history and it is appropriate that he surrender most of his personal wealth to the stockholders and bondholders he betrayed, Hevesi said. "I thank U.S. Attorney Kelley for deciding that Ebbers, assets should be returned to victimized investors through the class action litigation.

The terms of the settlement require Ebbers to transfer substantially all of his assets either directly to the Class in the WorldCom Securities Litigation or to a liquidation trust that will be established to sell off his assets for the benefit of the Class and MCI, Inc., the successor to WorldCom.

Other than certain amounts set aside to pay legal bills and a modest living allowance for his wife, Ebbers will be required to transfer all of his remaining cash to the Class. This will result in an initial recovery for the Class of approximately $5 million in cash, $3 million of which must be paid within three days of preliminary approval of the settlement by Judge Denise Cote. A hearing on preliminary approval has not been scheduled, but is expected to be held before Ebbers is sentenced in the criminal case by Judge Barbara Jones on July 13. The terms also require Ebbers to make the remaining $450,000 payment to the class of former WorldCom employees who sued Ebbers in the related WorldCom ERISA class action. That payment must be made before the July 13 sentencing.

In addition to the cash payments to the Securities Class and the ERISA Class, Mr. Ebbers will also be required to transfer to the Class/MCI trust substantially all of his remaining non-cash assets, including his multi-million dollar home in Clinton, MS (which he and his family must vacate when sold or in any event by October 31, 2005); a prospective multi-million dollar income tax refund; and his interests in a number of businesses including, a lumber company, several thousands acres of timberland, a major trucking company, a marina, a golf course, a grain elevator company, a rice farm, a hotel, and other real estate ventures. These assets will be sold in the coming months, with the proceeds being split between the Class and MCI. The Class will receive 75% of the proceeds of these sales, and MCI will receive 25% of the proceeds, except in the case of the Joshua Timberlands property, as to which MCI currently has a lien and for which the proceeds of any sale will be split two-thirds for the Class and one-third for MCI. A small percentage of the net proceeds of the Trust will be set aside in an escrow account to help fund settlements involving other litigation arising from Mr. Ebbers' tenure as CEO of WorldCom.

Although it is difficult to predict the precise amounts to be realized in sales of these non-cash assets, it is estimated that the total value of these assets could be in the range of $25 million to $40 million. Thus the class could receive $5 million in cash and between $18 million and $28 million from the sale of assets for a total of as much $33 million. The lawyers in the WorldCom Securities Litigation have agreed not to receive any fees from this settlement, although they were involved in the negotiations.

This settlement will resolve the securities class claims against Ebbers, which had been stayed by Judge Cote while Ebbers, criminal case was proceeding. The U.S. Attorney's Office, which presided over the extensive negotiations among Ebbers, the Class, and MCI, has agreed to seek no restitution at the time of Ebbers, sentencing on July 13. New York Attorney General Eliot Spitzer has also agreed to resolve his case against Ebbers in return for the payments and asset transfers he is making for the benefit of the Class.

The WorldCom stockholders and bondholders have already reached settlements worth a total of $6,128,056,840.

"I would like to thank the U.S. Attorney and his staff, in particular Assistant U.S. Attorney David Anders, our outside lawyers who continue to do an excellent job representing the class, and my staff for negotiating this excellent settlement, Hevesi said. "I also compliment the management and outside counsel of MCI, Inc. for their remarkable cooperation in fashioning this settlement and indeed for their cooperation throughout the WorldCom securities class action.

BACK TO TOP


 

 

April 25, 2005 - After four weeks of trial and two days before closing arguments were scheduled before Judge Denise Cote, Arthur Andersen LLP, the final defendant in the WorldCom securities class action, has agreed to settle, New York State Comptroller Alan G. Hevesi, the sole trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff, announced today.

The settlement includes the following terms:

  • Andersen will pay at least $65 million in cash and those funds have already been transferred to an escrow account. Hevesi would not agree to stop the jury trial until confirmation was received that the $65 million was wired into custody of the plaintiff,s lawyers.
  • In addition, the class will receive 20 percent of any distribution to any of Andersen,s 1,700 partners from any funds remaining when all other claims are settled.
  • If Andersen pays from its own funds more than $65 million in any other settlement, the WorldCom class will receive an additional amount.
  • There are further protections for the class in the event of a bankruptcy proceeding by Andersen.

"The WorldCom litigation should help prevent any more massive scandals with the multi-billions of dollars in costs they impose on millions of Americans and on our economy, Hevesi said. "There is already evidence that underwriters are improving their diligence, accounting firms are strengthening their audits and boards of directors are empowered to ask tougher questions of management. Those protections will restore confidence in our capital markets and encourage millions of Americans to continue to invest.

"Some claim that increased protection means less risk taking by American business and thus less economic growth. That,s nonsense. Fraud and deception have done enormous damage to the American economy and our ability to compete internationally. Indeed, fraud and deception by a few interfere with risk taking by the overwhelming majority of honest business people, Hevesi said.

"The settlement follows intense scrutiny of Andersen,s financial status. Anderson only agreed to show us its financial condition after we had finished presenting our case. The $65 million represents a substantial amount of Andersen,s remaining assets. While we were very pleased with the progress of the trial before Judge Cote, we believe this recovery of cash plus a substantial percentage of potential future payments was much preferable to putting Andersen into bankruptcy in the event the jury rendered a large verdict. Hevesi said. "I would like to thank U.S. District Judge Robert W. Sweet and U.S. Magistrate Judge Michael Dolinger for their essential assistance in achieving this settlement and in particular for confirming our view that the settlement is an excellent recovery.

If the Court approves this settlement and the settlements achieved earlier in the case, this will bring the total amount recovered for the WorldCom investor class to $6,128,056,840.

The settlement with Anderson follows a series of settlements reached within weeks of the scheduled trial date, which included the $460.5 million settlement with Bank of America announced on March 3; the $100.3 million settlement with Lehman Brothers, Goldman Sachs, Credit Suisse First Boston, and UBS Warburg announced on March 4; the $428.4 million in settlements with ABN AMRO, Mitsubishi Securities International, BNP Paribas Securities Corp. and Mizuho International announced on March 9; the $325 million settlement with Deutsche Bank Securities Inc. and the $112.5 million in settlements with WestLB and Cabato Holding announced on March 10, 2005; the $2 billion settlement with J.P. Morgan Securities Inc., and settlements with Blaylock & Partners, L.P. and Utendahl Capital Partners, L.P., announced on March 16; AND the settlement with the 12 former directors of WorldCom on March 21. All of these settlements have been granted preliminary approval by United State District Court Judge Denise Cote.

The first settlement reached in the case was the $2.575 billion settlement of July 1, 2005, with the Citigroup Defendants, which was granted final approval by Judge Cote on November 12, 2004.

Hevesi is the Court-appointed Lead Plaintiff in the consolidated securities class action, In re WorldCom, Inc. Securities Litigation, which is pending before Judge Cote.

The NYSCRF and investor class are represented by the law firms of Bernstein Litowitz Berger & Grossmann LLP and Barrack, Rodos & Bacine, who were appointed as Lead Counsel by Judge Cote in August 2002. The two firms also served as Lead Counsel in the Cendant class action, which resulted in a $3.2 billion settlement, previously the highest recovery ever achieved in a securities law class case.

"I would like to thank Barrack, Rodos and Bernstein Litowitz for their excellent work, which resulted in this historic outcome, Hevesi said.

BACK TO TOP


 

 

On March 21, 2005, Alan G. Hevesi, New York State Comptroller and sole Trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff, announced that former WorldCom Chairman Bert Roberts, the 12th and final director defendant in the WorldCom securities class action, has agreed to pay a total of $4.5 million from his own pocket to settle the claims against him in that action.

In addition, the insurance companies that had written directors and officers liability coverage for WorldCom will contribute an additional $1 million above and beyond the $35 million agreed to as part of the settlement regarding 11 other former director defendants previously announced on March 18, 2005.

If this settlement and the settlements achieved earlier in the case are approved by the Court, this will bring the total amount recovered for the WorldCom investor class to $6,063,056,840.

"We are delighted, after having revived a historic settlement with 11 of the former WorldCom outside directors, to have reached a settlement with the sole remaining director defendant, Bert Roberts. We now look forward to beginning the trial against WorldCom,s former auditor, Arthur Andersen, later this week, Hevesi said.

Click here to view Comptroller Hevesi and the Common Retirement Fund's press release regarding the settlement.

BACK TO TOP


 

 

On March 18, 2005, Alan G. Hevesi, New York State Comptroller and sole Trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff, announced that eleven of the former WorldCom outside directors sued in the WorldCom securities class action have agreed to pay a total of $20.25 million from their own pockets to settle the claims asserted against them in this action.

The settlement reached today revives the earlier settlement between Hevesi and members of the board that was announced in January 2005. That settlement was later terminated by Hevesi after a judicial finding that a technical provision of the securities laws threatened to subsequently reduce a verdict that might have been returned against WorldCom,s former banks at trial. With Judge Cote,s preliminary approval earlier today of the $2 billion J.P. Morgan settlement and all other banks now having settled with Hevesi, the impediment to settle with the Directors was removed.

In addition, the Settlement provides for an additional $35 million to be paid by the insurance companies that had written directors and officers liability coverage for WorldCom, for a total settlement of $55.25 million. Also, the directors have agreed to cooperate with the plaintiff in the continuing WorldCom lawsuit.

If this settlement and the settlements achieved earlier in the case are approved by the Court, this will bring the total amount recovered for the WorldCom investor class to $6,057,556,840.

Click here to view Comptroller Hevesi and the Common Retirement Fund's press release regarding the settlement.

BACK TO TOP


 

 

On March 16, 2005, Alan G. Hevesi, New York State Comptroller and sole Trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff, announced that another of the major underwriters in the Litigation has agreed to settle the claims asserted against it.

J.P. Morgan Securities and certain of its affiliates, which underwrote 37.5 percent of the May 2000 offering and 32.11 percent of the May 2001 offering, and served as a Co-Lead Underwriter for the May 2001 offering, have agreed to pay $2 billion in settlement of the claims asserted against them.

If this settlement and the settlements achieved earlier in the case are approved by the Court, this will bring the total amount recovered for the WorldCom investor class to $6,001,600,000.

Click here to view Comptroller Hevesi and the Common Retirement Fund's press release regarding the settlement.

These amounts, on a percentage basis, are higher than the rates established by the amount the Citigroup Defendants agreed in May 2004 to pay to settle the bond portions of the claims against them.

BACK TO TOP


 

 

On March 10, 2005, Alan G. Hevesi, New York State Comptroller and sole Trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff, announced that another of the major underwriters in the Litigation has agreed to settle the claims asserted against it.

Deutsche Bank Securities Inc., which participated as an underwriter in WorldCom,s May 2000 and May 2001 bond offerings, has agreed to pay $325,000,000 in settlement of the claims asserted against it. Deutsche Bank underwrote 1.4% of the May 2000 offering, and 8% of the May 2001 offering.

If this settlement and the settlements achieved earlier in the case are approved by the Court, this will bring the total amount recovered for the WorldCom investor class to $4,001,600,000.

The settlements announced today leave J.P. Morgan Securities and certain of its affiliates (which underwrote 37.5% of the May 2000 offering and 32.11% of the May 2001 offering, and served as a Co-Lead Underwriter for the May 2001 offering) as the only major underwriter defendant left in the case. Other non-underwriter defendants remaining in the case are Arthur Andersen and the former WorldCom directors. Jury selection begins on March 17, 2005.

Click here to view Comptroller Hevesi and the Common Retirement Fund's press release regarding the settlement.

These amounts, on a percentage basis, are higher than the rates established by the amount the Citigroup Defendants agreed in May 2004 to pay to settle the bond portions of the claims against them.

BACK TO TOP


 

 

On March 10, 2005, Alan G. Hevesi, New York State Comptroller and sole Trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff, announced that two additional investment banking firms facing trial next week have agreed to pay a total of $112.5 million to settle the claims asserted against them in the WorldCom Securities Litigation.

The investment banks are: WestLB AG (paying $75,000,000); and Caboto Holding SIM S.p.A. (paying $37,500,000). Both banks participated as junior underwriters in WorldCom,s May 2001 bond offering, in which they underwrote 3 percent of the bonds issued in that offering. The firms did not participate in the offering in May 2000. These additional settlements bring the total recovery for the Class to about $3.7 billion.

Click here to view Comptroller Hevesi and the Common Retirement Fund's press release regarding the settlement.

These amounts, on a percentage basis, are higher than the rates established by the amount the Citigroup Defendants agreed in May 2004 to pay to settle the bond portions of the claims against them.

BACK TO TOP


 

 

On March 9, 2005, Alan G. Hevesi, New York State Comptroller and sole Trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff, announced that four additional investment banking firms that participated as underwriters in WorldCom,s May 2001 bond offering have agreed to pay a total of $428.4 million to settle the claims asserted against them in the WorldCom Securities Litigation.

The four investment banks are: ABN AMRO Incorporated (paying $278,365,600); Mitsubishi Securities International plc (paying $75,000,000); BNP Paribas Securities Corp. (paying $37,500,000); and Mizuho International (paying $37,500,000). Together, they underwrote 12% of the bonds issued in WorldCom,s May 2001 offering. They did not participate in the May 2000 bond offering and, thus, there were no claims asserted against these firms based on that offering.

Click here to view Comptroller Hevesi and the Common Retirement Fund's press release regarding the settlement.

These amounts, on a percentage basis, are higher than the rates established by the amount the Citigroup Defendants agreed in May 2004 to pay to settle the bond portions of the claims against them. None of these entities was a lead underwriter for the May 2001 offering.

BACK TO TOP


 

 

On March 4, 2005, Alan G. Hevesi, New York State Comptroller and sole Trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff, announced that four investment banking firms that participated as underwriters in WorldCom's May 2000 bond offering have agreed to pay a total of $100.3 million to settle the claims asserted against them in the WorldCom Securities Litigation.

The four investment banks are: Lehman Brothers Inc. (paying $62,713,582); Credit Suisse First Boston, LP (paying $12,542,716); Goldman, Sachs & Co. (paying $12,542,716); and UBS Warburg LLC (paying $12,542,716). Together, they underwrote 12% of the bonds issued in WorldCom's May 2000 offering. They did not participate in the May 2001 bond offering and, thus, there were no claims asserted against these firms based on that offering.

Click here to view Comptroller Hevesi and the Common Retirement Fund's press release regarding the settlement.

As with the settlement with Bank of America announced on March 3, 2005, the amount that these firms are paying is based on the same formula under which the Citigroup Defendants settled the bond portions of the claims against them in May 2004, even though these entities were not lead underwriters for the May 2000 offering.

BACK TO TOP


 

 

On March 3, 2005, Lead Plaintiff New York State Common Retirement Fund announced that it had reached an agreement in principle to settle the claims asserted against defendants Banc of America Securities LLC and Fleet Securities, Inc. (the "BOA Defendants) in the WorldCom Securities Class Action for $460.5 million in cash. The settlement, which was reached two weeks before the start of the trial, resolves all claims asserted by the Class against the BOA Defendants, including those persons who purchased debt securities issued by WorldCom in connection with offerings in May 2000 and May 2001.

Click here to view Comptroller Hevesi and the Common Retirement Fund's press release regarding the settlement.

Lead Plaintiff previously settled the Class,s claims against the Citigroup Defendants in May 2004 for $2.575 billion, and that settlement was approved by the District Court in November 2004. The settlement with the BOA Defendants brings the total amount recovered for the Class to more than $3 billion. Lead Plaintiff is continuing to prosecute the Class,s claims against the remaining defendants, which includes certain remaining Underwriter Defendants, WorldCom,s former auditor, Arthur Andersen, and the former directors. Trial in this action is scheduled to commence on March 17, 2005.

BACK TO TOP

 


 

 

On November 5, 2004, United States District Court Judge Denise Cote granted final approval of the $2.575 billion settlement reached by New York State Comptroller Alan G. Hevesi, the Lead Plaintiff in the WorldCom Securities Class Action, and the other Named Plaintiffs, on behalf of the Class, with the Citigroup Defendants. Click here to view Judge Cote's Opinion and Order.

The Court-approved Notice of the Settlement was mailed to Class Members beginning on August 2, 2004. A Proof of Claim and Release form accompanied each Notice. Copies of the Notice and Proof of Claim form are posted on this website, and can be accessed by clicking here. The Court established March 4, 2005 as the date by which Class Members must submit their Proof of Claim forms.

Class members are encouraged to gather their documentation, fill out their Proof of Claim form, and submit it to the Administrator. Click here for details on contacting the claims administrator and the answers to many frequently asked questions on the Citigroup settlement.

Click here for details on the Citigroup settlement.

Click here to view the May 10, 2004 press release of Lead Plaintiff the New York State Common Retirement Fund, concerning the Citigroup Settlement. Click here to view the November 5, 2004 press release of Lead Plaintiff the New York State Common Retirement Fund, concerning the Court's granting of final approval of the Citigroup Settlement.

Class Members are encouraged to check this website regularly to stay up to date on the status of the proceedings and orders issued in this litigation.

BACK TO TOP

ATTORNEY ADVERTISING/DISCLAIMER

For Barrack, Rodos & Bacine:


Gerald J. Rodos
Mark R. Rosen
Jeffrey A. Barrack
Regina M. Calcaterra
Chad A. Carder
Beth Targan
Lisa Lamb
William J. Ban

For Bernstein Litowitz Berger & Grossmann LLP:

Max Berger
Steven Singer
Chad Johnson
John Browne
Patricia Gillane
Beata Gocyk-Farber


Information regarding the bar admissions of the attorneys at
Barrack, Rodos & Bacine and Bernstein Litowitz Berger & Grossmann LLP may be viewed via the links to the respective firms' websites.

Barrack, Rodos & Bacine LLP
Two Commerce Square
2001 Market Street
Suite 3300
Philadelphia, PA 19103
Tel: 215.963.0600
Fax: 215.963.0838
http://www.barrack.com

Bernstein Litowitz Berger &
Grossmann LLP

1285 Avenue of the Americas
New York, NY 10019
Tel: 212.554.1400
Fax: 212.554.1444
www.blbglaw.com



This website provides information and updates relating to In re WorldCom Securities Litigation, a consolidated, certified class action pending in the Southern District of New York before District Court Judge Denise L. Cote.

This site is maintained by Bernstein Litowitz Berger & Grossmann LLP and Barrack, Rodos & Bacine and it is not an official website of the District Court for the Southern District of New York or the New York State Common Retirement Fund. If you would like to contact a lawyer representing the Class in this litigation, click on Contact Us.

 

12/20/13: Fourth Distribution of Settlement Fund (including proceeds of supplemental settlement with Arthur Andersen) made in accordance with Courtís Prior Orders.

12/14/12: Judge Cote Grants Final Approval to Settlement of Contingent Payment Claim with Arthur Andersen LLP

10/2/12: Judge Cote Preliminarily Approves Proposed Settlement of Contingent Payment Claim with Arthur Andersen LLP and Schedules Settlement Hearing for December 14, 2012

3/26/10: Third Distribution of Settlement Fund Made in Accordance with Court Order of September 18, 2009.

9/18/06: Judge Cote Grants Approval of the Final Distribution Plan.

2/15/08: Second Distribution of Settlement Fund Made in Accordance with Court Order of January 23, 2008.

1/23/08: Judge Cote Grants Approval of Second Distribution of Net Settlement Fund. Click here to View the Court's order..

12/15/06: Initial distribution of 75% of Settlement Fund made in accordance with Court Order of November 29, 2006.

11/29/06: Court grants approval of initial distribution of Settlement Fund.

11/21/06: Lead Plaintiff files motion seeking initial distribution of 75% of the Settlement Fund.

6/20/06: Judge Cote extends deadline for submitting proof of claim forms to June 15, 2006.

9/21/05: Judge Cote Grants Final Approval of All Settlements.

6/14/05: Judge Cote Sets Deadlines for Filings Related to Settlements, Extends Deadline for Claim Form Submittal to August 26, 2005 and Schedules Final Settlement Hearing for September 9, 2005.

1/18/05: Judge Cote Denies Partial Motion for Summary Judgment of Arthur Andersen, Requiring Andersen to Stand Trial.

12/15/04: Judge Cote Issues Summary Judgment Decision, Finding 2001 Registration Statement False and Misleading and Requiring Underwriter Defendants to Stand Trial in February 2005.

07/08/04: 2d Circuit Court of Appeals Denies Mandamus Petition; Trial Scheduled for January 10, 2005.

05/10/04: Citigroup Defendants Agree to Settle All Claims Against Them for $2.65 billion.

04/16/04: SEC Files "Friend of the Court" Brief Supporting Class and Opposing Salomon in 2d Circuit Appeal.

12/11/03: Judge Cote Issues Notice of Class Action and Notice to All Investors Who Have Filed Individual WorldCom Actions.

11/21/03: Judge Cote Issues Opinion and Order Granting in Part and Denying in Part the Underwriter Defendants' Motions to Dismiss Claims Filed in the Alaska Action

11/17/03: Judge Cote Issues Order Resulting From Milberg Weiss, Solicitations and Allows Lead Plaintiff to Circulate a Curative Notice to Plaintiffs in All Individual Actions

10/24/03: Judge Cote Grants Lead Plaintiff,s Motion for Class Certification

08/01/03: Lead Plaintiff Files First Amended Class Action Complaint

06/24/03: Judge Cote Denies Arthur Andersen LLP's Motion to Dismiss the Class Action Complaint

05/28/03: Judge Cote Issues Order Consolidating Class Actions and Individual Actions for Pre-Trial Purposes

05/22/03: Judge Cote Explains Structure for Consolidating Class and Individual Actions

05/20/03: Judge Cote Denies Renewed Motion to Remand Individual Actions to State Court

05/19/03: Judge Cote Largely Denies Defendants' Motions to Dismiss the Class Action Complaint

05/13/03: Lead Plaintiff Files Objection in Bankruptcy Court to WorldCom's Proposed Plan

05/05/03: Judge Cote Denies Motions to Remand Individual Actions to State Court

03/28/03: Judge Lynch appoints Bernstein Litowitz Berger & Grossmann LLP and Barrack Rodos & Bacine as Co-Lead Counsel in the Salomon Analyst WorldCom Litigation

03/24/03: Judge Cote Denies Salomon Smith Barney, Inc.'s Motion to Sever Claims Relating to Jack Grubman

03/20/03: Judge Lynch Appoints the New York State Common Retirement Fund Lead Plaintiff in the Salomon Analyst WorldCom Litigation

03/03/03: Judge Cote Denies Motion to Remand Individual Action to State Court

01/24/03: Lead Plaintiff Files Opposition to Motions to Dismiss

11/21/02: Judge Cote Grants Lead Plaintiff's Motion for Relief from Discovery Stay

11/08/02: Bankruptcy Court Grants Lead Plaintiff's Motion for Limited Modification of Discovery Stay

11/07/02: Judge Cote Orders Lead Plaintiff and Defendants to Discuss Settlement

10/11/02: Lead Plaintiff Files Class Action Complaint

08/15/02: Judge Cote Appoints the New York State Common Retirement Fund Lead Plaintiff and Appoints Barrack, Rodos & Bacine and Bernstein Litowitz Berger & Grossmann LLP as Co-Lead Counsel in the WorldCom Securities Litigation

For more information about these and other key developments in the WorldCom Securities Litigation and the Salomon Analyst Litigation, click here.