SEC To Begin Distributing WorldCom Settlement

Law360, New York (October 23, 2006, 12:00 AM EDT) -- Four years after an $11 billion fraud caused the collapse of telecommunications company WorldCom Inc., investors affected by the scandal will finally be compensated for their losses.

The U.S. Securities and Exchange Commission will begin distributing the $150 million the agency collected in a settlement with WorldCom.

In the wake of its 2002 collapse and the subsequent SEC investigation, WorldCom agreed in 2003 to pay the agency $750 million, which was placed in a special fund for later distribution to investors.

The distribution process will not...
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