Ebbers sued for $400m
Print storyWorldCom wants its money back...
Posted in Telecoms, 12th July 2004 09:12 GMT
Tune into our application security webcast, click here
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. ®
Related stories
Ebbers and chums pay $51m to settle pensions suit
Ex-WorldCom CFO coughs in Mississippi court case
Bernie Ebbers faces criminal charges
The future of SaaS and IT infrastructure management
Can Outsiders Enhance Exchange?
The Total Economic Impact of Dell's PC products and services
The best practices guide for application security
Reducing messaging and web security costs with managed services
Win a Samsung C6625!
Is your cameraphone an oxymoron?
Reg Mobile and Wireless newsletter is go! go! go!
Sign up, sign up for The Register IT security newsletter