Ebbers sued for $400m
PrintWorldCom wants its money back...
Posted in Telecoms, 12th July 2004 09:12 GMT
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Bernie Ebbers, disgraced ex-CEO of WorldCom, is being sued for $400m by the firm he used to run.
WorldCom, which now trades as MCI, filed documents in the New York Bankruptcy court for repayment of a $408m loan made to Ebbers. He is believed to have returned some of the money with the proceeds of share sales. The company is also seeking to end Ebbers' generous pension and benefits package.
Ebbers used WorldCom shares to buy Canada's largest cattle ranch and a shipyard. When the share price started to come under pressure the company lent him money to underwrite his loans and stop him selling stock.
Ebbers, and 18 other executives, last week paid $51m to settle a class action suit brought by ex-WorldCom employees who saw the value of their pensions collapse along with WorldCom's share price. In November, Ebbers faces trial for fraud and conspiracy for his part in the $11bn collapse of WorldCom. ®
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