Citigroup Settlement of WorldCom Suit OKd
From Bloomberg News
A federal judge in New York approved a $2.6-billion settlement of a class-action lawsuit by WorldCom Inc. investors who claimed they were defrauded by Citigroup Inc.
The settlement is the second largest ever in a securities fraud case. More than 170,000 WorldCom shareholders and bondholders have filed claims against Citigroup.
The Ashburn, Va.-based long-distance company was renamed MCI Inc. after emerging from bankruptcy in April.
Investors accused Citigroup of hiding the financial risks when it helped sell $10 billion of WorldCom debt in 2001.
Shares in New York-based Citigroup rose 4 cents to $46.13 on the NYSE.
