As previously discussed in The 10b-5 Daily, the state of Ohio has pursued a strategy of supplementing pending securities class actions with its own individual suits. That strategy appears to have paid off, at least in the WorldCom case. Columbus Business First reports that Ohio, on behalf of its pension funds, has agreed to a $94 million settlement with individuals and banks it alleged participated in the WorldCom securities fraud.
Quote of note: “The litigation was initiated by former Ohio Attorney General Betty Montgomery, who split with several states involved in a federal class-action lawsuit against WorldCom and its executives in September 2002. At the time, Montgomery said she made the move because Ohio was unable to gain lead plaintiff status in the federal case.”