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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.

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Shares in New York-based Citigroup rose 4 cents to $46.13 on the NYSE.


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