MCI & Danny Glover

Les Schaffer schaffer at optonline.net
Tue May 20 10:46:22 MDT 2003


Eli, re/ the case of MCI vs D. Glover:

> The right-wing view of the situation

interesting too that shareholders now come before creditors. somehow i
don;t think this change in law came about because of cocern for all
the "little investors".

les schaffer

--


MCI Agrees to Pay $500 Million in Fraud Case
By STEPHEN LABATON


WASHINGTON, May 19 -- MCI, the former WorldCom, agreed today to settle
accusations of fraud by the Securities and Exchange Commission by
paying a $500 million penalty that will ultimately be given to
investors.

The penalty was the largest ever sought by the commission, and the
agreement resolves the biggest fraud case ever filed by the agency. If
it is approved by a federal judge in Manhattan, it will also remove
one of the last significant obstacles to MCI's emerging from the
largest Chapter 11 bankruptcy ever filed.

The agreement would represent an important departure from previous
bankruptcy law. Structured under a new provision of federal law that
allows the government to divert penalties destined for the Treasury to
investors instead, it would permit shareholders to jump ahead of
creditors and receive significant compensation. The claims of
shareholders in bankruptcy are typically wiped out in favor of those
filed by creditors.

http://www.nytimes.com/2003/05/20/business/20PHON.html





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