Former Worldcom directors cough up $18m
PrintPersonal contribution to $54m settlement
Posted in Financial News, 7th January 2005 11:33 GMT
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Ten former directors of WorldCom have agreed to cough up $18m (£9.5m) of their own cash to help settle a class action lawsuit following the collapse of the telecoms company in 2002.
According to reports from the US, the ten weren't directly involved in the accounting scandal that rocked the corporate world, although they were named in lawsuits.
In total, they will pay $54m (£28.7m) to settle the lawsuit brought by former shareholders. $36m (£19m) will be paid by the directors' insurers with the rest made up from their own pockets.
The former directors are Clifford Alexander, James Allen, Judith Areen, Carl Aycock, Max Bobbitt, Stiles Kellett, Gordon Macklin, John Porter and Lawrence Tucker. The estate of John Sidgmore, who died last year, also agreed to pay up.
WorldCom emerged from Chapter 11 bankruptcy protection in April last year after spending the two years clearing up the mess left behind from a damaging $11bn (£5.8bn) accounting scandal. It has since changed its name to MCI. ®
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