|
|||
| CONTACT: | Press
Office (518) 474-4015 |
FOR RELEASE: |
Immediately
March 3, 2005 |
|
Banc of America Securities LLC and Fleet Securities, Inc., the two Bank of America defendants in the WorldCom Securities Litigation that underwrote WorldCom bonds in May 2000 and May 2001, have agreed to pay a total of $460.5 million to settle the claims asserted against them in the action, Alan G. Hevesi, New York State Comptroller and sole Trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff, announced today. This is an important settlement as the case heads to trial on March 17, 2005 with the start of jury selection. The amount that Bank of America is paying is based on the same formula under which the Citigroup Defendants settled the bond portions of the claims against them in May 2004, even though the Bank of America entities were not lead underwriters for the offerings. “The fact that we have achieved a settlement of this magnitude, and at the same rate as Citigroup paid earlier, sends a strong message to investment banks that investors expect and will require them to conduct meaningful due diligence, and not merely rely on others to perform their obligations. The public is entitled to disclosure of all relevant information relating to a stock or bond issuance,” Hevesi said. Hevesi is the Court-appointed Lead Plaintiff in the consolidated securities class action, In re WorldCom, Inc. Securities Litigation, which is pending before Judge Denise Cote in federal court in Manhattan. This is the second settlement reached in the WorldCom securities class action with a member of the underwriting syndicate for the WorldCom bonds issued during the Class Period. The first was with the Citigroup Defendants, for the sum of $2.575 billion, which represented the largest amount ever recovered in a securities class action from a party other than the company that issued the subject securities. That settlement was approved by United States District Court Judge Denise Cote on November 12, 2004. If the Bank of America settlement is approved, this will bring the total recovery to date to $3,035,500,000. Hevesi continued: “We are also vigorously continuing to pursue our claims against the others who bear responsibility for the debacle at WorldCom, including the remaining 14 underwriters, WorldCom’s auditor, Arthur Andersen, and the former directors of WorldCom, and look forward to the start of trial against those defendants on March 17, 2005.” The NYSCRF and investor class are represented by the law firms of Barrack, Rodos & Bacine and Bernstein Litowitz Berger & Grossmann LLP, who were appointed as Lead Counsel by Judge Cote in August 2002. In connection with the Court's approval of the Citigroup Settlement, proof of claim forms have previously been sent to members of the Class. Comptroller Hevesi encourages all Class members to submit their claim forms by this Friday, March 4, 2005 — the Court-ordered deadline for submission of claim forms. To obtain further information concerning that Settlement and the submission of proof of claim forms, investors may access the website maintained by Lead Counsel, at www.worldcomlitigation.com. ###
Albany Phone: (518) 474-4015 Fax:(518)
473-8940 |
|||