Judge approves $8.8 billion in WorldCom settlements
A US district court judge last week approved a US$6.1 billion ($NZ8.8 billion) settlement to investors who lost money in an accounting fraud at telco giant WorldCom.
A US district court judge last week approved a US$6.1 billion ($NZ8.8 billion) settlement to investors who lost money in an accounting fraud at telco giant WorldCom.
Former New York City Mayor and ethical icon Rudolph Giuliani may be tapped to commandeer the board of WorldCom, as the telecommunications giant struggles to rise from the ashes of bankruptcy and scandal, according to a report on Monday (US time).
The US Department of Justice has charged two former WorldCom executives with securities fraud, calling them "no better than common thieves" and promising ongoing investigation that could lead to more arrests.
WorldCom's CEO, John Sidgmore has promised a quick recovery from the company's bankruptcy, but until that happens, end users see months of uncertainty ahead.
The contingency planning that IT manager Barry Brunetto developed for his company, Blount International, covers a lot of scenarios, including failed circuits and earthquakes. But he never imagined that a company of WorldCom's stature could be a disaster, and Brunetto is now looking for a safety net for his data services. He's not alone.
Here in London, the dominant reaction to the Enron, WorldCom, Adelphia Communications and now Xerox scandals and the subsequent decline in the dollar has been one of almost unrestrained gloating.
Telecom has no plans to increase its holding in the Southern Cross cable and speculation about the matter in the wake of the WorldCom scandal is premature, say Telecom public affairs manager Martin Freeth.
"Our first reaction is that the sky is not falling"
WorldCom, the owner of local ISP Voyager, is facing allegations of the largest fraud in US corporate history.