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2nd Circuit OKs $750M Over WorldCom Fraud

Law360 (October 2, 2006, 12:00 AM EDT) -- The Second Circuit Court of Appeals ruled on Monday that the Securities and Exchange Commission acted properly in deciding how to distribute a $750 million settlement resulting from a securities class action filed by WorldCom Inc. investors.

The Official Committee of Unsecured Creditors of WorldCom appealed the decision from a district court, arguing that the judge unfairly gave “heightened deference” to the SEC in administering the distribution of the settlement.

The appeals court rejected the argument, ruling that the U.S. District Court for the Southern District...
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