Citigroup, the world’s largest bank, today said it would pay $2.65 billion to settle a class-action lawsuit brought by holders of WorldCom stocks and bonds, who accused it of participating in fraud with WorldCom, the phone company now known as MCI.
Under the terms of the settlement, Citigroup will make a payment o $2.65 billion, or $1.64 billion after tax, to the settlement class, which consists of all persons who purchased or otherwise acquired publicly traded securities of WorldCom during the period from April 29, 1999 through and including June 25, 2002. The payment will be allocated between purchasers of WorldCom stock and purchasers of WorldCom bonds.
Citigroup said it has increased its reserves to $6.7 Billion Pre-Tax for all remaining exposure in Enron and other pending class-action lawsuits related to 2003 regulatory settlements.
“As a result of this settlement, we now have a better understanding of our remaining exposure for Enron and other litigation related to the 2003 regulatory settlements and have adjusted our reserves accordingly,” said Charles Prince, chief executive of Citigroup.
Citigroup, as part of the settlement, admitted to no wrongdoing.
(via Business Wire)
{ 3 comments }
I owned 1000 shares of worldcom stock in 2000 which was held with Fidelity.
Do I have a case?
I own 595 shares of worldcom and hold the stock myself in my safe, Do I have a case? am I included?
I own 595 shares of worldcom and hold the stock myself in my safe, Do I have a case? am I included?
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