WorldCom Settlement Update II

WorldCom’s proposed $750 million settlement (a combination of cash and stock) with the SEC has been approved by Judge Rakoff of the S.D.N.Y.

Quote of note: “Rakoff said killing the company ‘would unfairly penalize its 50,000 employees, remove a major competitor from a market that involves significant barriers to entry, and set at naught the company’s extraordinary efforts to become a model corporate citizen.'”

CorpLawBlog has posted a persuasive critique of the settlement. No word on how the settlement will effect the pending securities class actions.

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Filed under Settlement, WorldCom

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