On July 7, 2003, United States District Judge Jed S. Rakoff approved the SEC's settlement with WorldCom (now known as MCI, Inc., a predecessor company to MCI, Inc., which merged with Verizon Communications Inc. in January 2006). As part of the settlement, WorldCom has transferred $500 million in cash and 10 million shares of new MCI common stock to an escrow fund that the Court established.
On November 7, 2003, the Court appointed former SEC Chairman Richard C. Breeden as Distribution Agent to oversee the distribution of the escrow fund to eligible investors who were harmed by WorldCom's fraud. The Court also appointed former SEC Commissioner J. Carter Beese, Jr. as Equity Manager to manage the stock portion of the escrow fund.
On July 19, 2004, the Court approved the SEC's plan for distributing the fund. Please note that the SEC is not involved in the distribution of either of these funds.
For more information about the SEC's action against WorldCom, please visit our Spotlight on WorldCom. There you can find litigation releases, court orders, and a report by Richard C. Breeden.