Today, Citigroup, Inc. (NYSE: C) announced it would pay $2.65 billion to WorldCom investors for its role in the massive MCI WorldCom (Pink Sheets: WCOEQ), (Other OTC:MCWEQ.PK – News), (Other OTC:MCIAV.PK – News) accounting fraud scandal. MCI WorldCom’s accounting fraud led to the nation’s largest bankruptcy filing and left MCI WorldCom shareholders with shares of worthless stock. Parker & Waichman, LLP and affiliated counsel have filed thousands of claims on behalf of current and former MCI WorldCom shareholders and employees and continues to encourage all current and former MCI WorldCom shareholders to evaluate their legal options by requesting a free lawsuit case evaluation at www.worldcomstockfraud.com.
Citigroup’s settlement offer comes on the day that the Company was scheduled to argue whether the class action lawsuit was properly certified. Instead, upon the call of the court calendar this morning at the United States Court of Appeals for the Second Circuit, Citigroup and other counsel submitted a consent order to suspend consideration of the issues concerning the class action appeal and asked that the case be sent back to the district court for consideration of the class action settlement terms. The settlement offer comes several weeks after the Securities and Exchange Commission filed an Amicus Curiae brief or a “friend of the court” brief which clearly sided with the plaintiffs position in the class action lawsuit and argued that that analysts like Jack Grubman do in fact affect the price of a company’s stock and bonds and that the analysts employer may be held accountable under the current law for misrepresentations they may make.
Last month, WorldCom emerged from bankruptcy and officially changed its name to MCI, Inc. As a result of the MCI emergence from bankruptcy shares trading under the symbols WCOEQ and MCWEQ are essentially worthless. Parker & Waichman, (http://www.worldcomstockfraud.com) is encouraging all current and former WorldCom and MCI shareholders and current and former employees who owned pre-bankruptcy shares to evaluate their legal options immediately.
To date, Parker & Waichman and affiliated counsel represent over 3000 current and former MCI and WorldCom shareholders. Parker & Waichman believes many shareholders may benefit from opting out of the class action to pursue individual claims.
The previous February 20, 2004 opt-out deadline has been extended but no new opt-out deadline has been announced. As of result of the proceeding this morning, it is believed that a new opt out period will be announced in the near future. Parker & Waichman will publish the new opt-out deadline on its websites as soon as it becomes available. Current and former WorldCom and MCI shareholders and employees can visit www.worldcomstockfraud.com and www.worldcomclassaction.com to view and download the WorldCom class action opt-out form entitled, “Notice of Class Action”.
Current and former shareholders who desire to opt-out of the WorldCom class action lawsuit must mail the opt-out form or required information before the opt-out deadline. This will permit them to pursue individual claims against the defendants, including Salomon Smith Barney. Current and former WorldCom and MCI shareholders who do not specifically opt-out of the class action by filing the required form or information are automatically included in the class action lawsuit.
If You Desire To Opt-Out Of The WorldCom Class Action Lawsuit, You Must Act By Filing The Opt-Out Form or Required Information or You Will Be Automatically Included In The Class Action.
For more information on Parker & Waichman, LLP please visit http://www.yourlawyer.com or call 1-800-YOURLAWYER. Current and former shareholders are also encouraged to visit http://www.injurytalk.com.
Parker & Waichman, LLP