Worldcom payouts put directors under pressure

In an unprecedented settlement, 10 former Worldcom directors have had cough up $18m (£9.6m) of their own pockets to settle an investor-led class action lawsuit filed in the midst of accounting fraud accusations.

Written by Nicholas Neveling

According to The Guardian James Wareham, the legal representative of former director James Allen, confirmed that the directors would personally pay for part of the settlement, with a further $36m to be covered by directors' liability insurance.

Although none of the directors involved were directly implicated in the Worldcom debacle, their settlement could see directors take on increasing accountability if they do not prevent matters from spiralling out of control.

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