Judge Tosses WorldCom Award, Snubbing NASD

Law360 (March 22, 2006, 12:00 AM EST) -- In an unusual move, a federal judge has overturned an award given to WorldCom Inc. investors by an arbitration panel of the National Association of Securities Dealers against two former brokers in Citigroup Inc.’s Salomon Smith Barney unit.

Judge Denise Cote of the U.S. District Court in Manhattan said the panel had exceeded its authority in awarding WorldCom investors Elizabeth and Donald Rich $448,000 in January 2005.

According to the judge, the panel ignored evidence that the Riches did not opt out of an investor class...
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