A U.S. district court judge on Wednesday approved a US$6.1 billionsettlement to investors who lost money in an accounting fraud at theformer WorldCom Inc.Judge Denise Cote of the U.S. District Court for the Southern Districtof New York approved settlements that parties agreed to earlier thisyear, including $2 billion to J.P. Morgan Securities Inc. and $325million Deutsche Bank Securities Inc., according to a spokesman for NewYork State Comptroller Alan Hevesi, trustee of the New York StateCommon Retirement Fund and the lead plaintiff in the civil case.In November 2004, Cote approved a $2.58 billion settlement with Citigroup Inc.The settlement includes payments from former WorldCom directors, aswell as former Chief Executive Officer Bernard Ebbers, who wasconvicted of fraud in March and sentenced to 25 years in prison. Underthe settlement, Ebbers must give up a house in Clinton, Mississippi,and interests in several businesses, including a lumber company, amarina, a golf course and several thousand acres of timberland.Hevesi’s office in June estimated Ebbers’ assets included in thesettlement were worth $25 million to $40 million. WorldCom, now MCI Inc., filed for bankruptcy in July 2002, about amonth after an internal audit in June 2002 uncovered $3.8 billion inaccounting errors. The accounting misstatements eventually reached atotal of $11 billion. In March 2004, a month before the newly renamedMCI emerged from bankruptcy, the company issued a report reducingpretax income for 2000 and 2001 by $74.4 billion.By Grant Gross – IDG News Service (Washington Bureau) Related content feature Top cybersecurity M&A deals for 2023 Fears of recession, rising interest rates, mass tech layoffs, and conservative spending trends are likely to make dealmakers cautious, but an ever-increasing need to defend against bigger and faster attacks will likely keep M&A activity steady in By CSO Staff Sep 22, 2023 24 mins Mergers and Acquisitions Mergers and Acquisitions Mergers and Acquisitions brandpost Unmasking ransomware threat clusters: Why it matters to defenders Similar patterns of behavior among ransomware treat groups can help security teams better understand and prepare for attacks By Joan Goodchild Sep 21, 2023 3 mins Cybercrime news analysis China’s offensive cyber operations support “soft power” agenda in Africa Researchers track Chinese cyber espionage intrusions targeting African industrial sectors. By Michael Hill Sep 21, 2023 5 mins Advanced Persistent Threats Cyberattacks Critical Infrastructure brandpost Proactive OT security requires visibility + prevention You cannot protect your operation by simply watching and waiting. It is essential to have a defense-in-depth approach. By Austen Byers Sep 21, 2023 4 mins Security Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe