A settlement has been reached between Citigroup and WorldCom in a class action litigation for $2.6 billion in the United States District Court for the Southern District of New York.
Under the final settlement agreement Citigroup denies the fact that it committed any violation of law and agreed to the settlement solely to eliminate the uncertainties, burden and expense of further protracted litigation
The settlement term provides that Citigroup will make a payment of $2.65 billion; $1.64 billion after tax, to all persons who purchased or otherwise acquired publicly traded securities of WorldCom during the period from April 29, 1999 to June 25, 2002. As a result of this settlement with WorldCom, the company has reevaluated its reserves for the numerous lawsuits and other legal proceedings arising out of the transactions and activities.
[BBC NEWS]
