Citigroup admitted no liability but chief executive Charles Prince said it was important that it put this unfortunate chapter behind it. In a conference call with analysts, Prince said the settlement represents an insurance policy against a potential $54bn risk if the case had gone to trial.
WorldCom’s $104bn bankruptcy in 2002 was the largest in corporate history and epitomized the excess of the dot-com stock market boom. Now known as MCI Inc, it emerged from Chapter 11 protection last month.
New York State Comptroller Alan Hevesi said the settlement is only the first step in pursuing claims against other firms and individuals involved in the fraud that drove WorldCom into bankruptcy.
He said the settlement is historic because it is the largest amount ever recovered in a securities class-action from a third party.
This article is based on material originally published by ComputerWire
