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| CONTACT: | Press
Office (518) 474-4015 |
FOR RELEASE: |
Immediately March 4, 2005 |
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HEVESI ANNOUNCES FURTHER SETTLEMENTS
IN WORLDCOM Four investment banking firms that participated as underwriters in WorldCom’s May 2000 bond offering have agreed to pay a total of $100.3 million to settle the claims asserted against them in the WorldCom Securities Litigation, 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. The four investment banks are: Lehman Brothers Inc. (paying $62,713,582); Credit Suisse First Boston, LP (paying $12,542,716); Goldman, Sachs & Co. (paying $12,542,716); and UBS Warburg LLC (paying $12,542,716). Together, they underwrote 12% of the bonds issued in WorldCom’s May 2000 offering. They did not participate in the May 2001 bond offering and, thus, there were no claims asserted against these firms based on that offering. As with the settlement with Bank of America announced yesterday, the amount that these firms are 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 these entities were not lead underwriters for the May 2000 offering. “We commend these four investment banks for putting this issue behind them. While we are willing to talk with other defendants about potential settlements, we are looking forward to the start of trial against any remaining defendants on March 17, 2005,” 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 settlement follows the $460.5 million settlement with Bank of America announced yesterday, and the $2.575 billion settlement with the Citigroup Defendants, which was approved by United States District Court Judge Denise Cote on November 12, 2004. If the Bank of America settlement and the present settlement are approved, this will bring the total recovery to date to $3,135,500,000. 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 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 |
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