Press Releases

CONTACT:
Press Office
(518) 474-4015

 FOR RELEASE:

Immediately
March 16, 2005


Hevesi Announces Settlement with J. P. Morgan Chase
in WorldCom Securities Litigation

Total Recovery for WorldCom Class Now More Than $6 Billion
Trial Remains Set to Commence on March 17, 2005

Alan G. Hevesi, New York State Comptroller and sole Trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff in the WorldCom Securities Litigation, announced today that J.P. Morgan Securities and certain of its affiliates, which underwrote 37.5 percent of the May 2000 offering and 32.11 percent of the May 2001 offering, and served as a Co-Lead Underwriter for the May 2001 offering, have agreed to pay $2 billion in settlement of the claims asserted against them.

If this settlement and the settlements achieved earlier in the case are approved by the Court, this will bring the total amount recovered for the WorldCom investor class to $6,001,500,000.

“J.P. Morgan Chase is one of the most important financial institutions in the U.S. and in New York. I am particularly pleased that the management of the bank has decided to put this issue from the past behind it so it can focus on growing and creating jobs. We remain willing to talk with other defendants about potential settlements, but we remain focused on the start of the trial against any remaining defendants next week,” Hevesi said.

This settlement follows the $460.5 million settlement with Bank of America announced on March 3, the $100.3 million settlement with Lehman Brothers, Goldman Sachs, Credit Suisse First Boston, and UBS Warburg announced on March 4, the $428.4 million in settlements with ABN AMRO, Mitsubishi Securities International, BNP Paribas Securities Corp. and Mizuho International announced on March 9, 2005, the $325 million settlement with Deutsche Bank Securities Inc. and the $112.5 million in settlements with WestLB and Cabato Holding announced on March 10, as well as the $2.575 billion settlement with the Citigroup Defendants, which was approved by United States District Court Judge Denise Cote on November 12, 2004.

The amount being paid by J.P. Morgan is higher, on a percentage basis, than the rate established by the amount the Citigroup Defendants agreed in May 2004 to pay to settle the bond portions of the claims against them.

Hevesi is the Court-appointed Lead Plaintiff in the consolidated securities class action, In re WorldCom, Inc. Securities Litigation, which is pending before Judge Cote.

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. The two firms also served as Lead Counsel in the Cendant class action, which was previously the highest recovery ever achieved in a securities law class case.

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
NYC Phone: (212) 681-4825  Fax:(212) 681-4468
Internet: http://www.osc.state.ny.us
E-Mail:press@osc.state.ny.us