January 7, 2005 — (WEB HOST INDUSTRY REVIEW) — According to reports, 10 former directors of telecommunications carrier and Web hosting provider Worldcom (worldcom.com) have agreed to pay a total of $54 million to settle parts of a class-action securities lawsuit that stems from the company’s accounting scandal, widely reputed to be the largest in history.
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The 10 directors will reportedly be required to pay $18 million out of their own pockets, with liability insurance companies picking up the remaining $36 million.
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The deal is not yet finalized, reports say, and must be finalized by District Judge Denise L. Cote.
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The 10 directors, none of who are alleged to have participated directly in the scandal, are James C. Allen, Judith Areen, Carl J. Aycock, Max E. Bobbitt, Clifford L. Alexander Jr., Stiles A. Kellett Jr., Gordon S. Macklin, John A. Porter, Lawrence C. Tucker, and the estate of the late John W. Sidgmore. None of the directors are currently employed with Worldcom.
