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| CONTACT: | Press
Office (518) 474-4015 |
FOR RELEASE: |
Immediately March 21, 2005 |
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Hevesi Announces Settlement With Former Worldcom Chairman Bert Roberts Former WorldCom Chairman Bert Roberts, the 12th and final director defendant in the WorldCom securities class action, has agreed to pay a total of $4.5 million from his own pocket to settle the claims against him in that action, New York State Comptroller Alan G. Hevesi, the sole trustee of the New York State Common Retirement Fund and Court-appointed Lead Plaintiff, announced today. In addition, the insurance companies that had written directors and officers liability coverage for WorldCom will contribute an additional $1 million above and beyond the $35 million agreed to as part of the settlement announced Friday. 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 $6,063,056,840. “We are delighted, after having revived a historic settlement with 11 of the former WorldCom outside directors, to have reached a settlement with the sole remaining director defendant, Bert Roberts. We now look forward to beginning the trial against WorldCom’s former auditor, Arthur Andersen, later this week,” Hevesi said. On Friday, Comptroller Hevesi announced a settlement with 11 of the former WorldCom outside directors in which those individuals agreed to pay a total of $20.25 million from their own pockets. In addition, that settlement provides for an additional $35 million to be paid by the insurance companies that had written directors and officers liability coverage for WorldCom, for a total settlement of $55.25 million. 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. Friday’s settlement resolves all claims asserted in the WorldCom securities class action against former directors James C. Allen, Judith Areen, Carl J. Aycock, Max E. Bobbitt, Clifford L. Alexander, Jr., Francesco Galesi, Stiles A. Kellett, Jr., Gordon S. Macklin, John A. Porter, the Estate of John W. Sidgmore, and Lawrence C. Tucker. All served on WorldCom’s board of directors at various times between April 29, 1999 and June 25, 2002, the period during which WorldCom allegedly issued false and misleading statements to the investing public. The settlement with Mr. Roberts and Friday’s settlement with 11 former directors, follows the $2 billion settlement with J.P. Morgan Securities Inc., the $572,840 settlement with Blaylock & Partners, L.P. and the $234,000 settlement with Utendahl Capital Partners, L.P. announced on March 16, 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 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 |
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