A US federal judge last night approved a partial settlement between WorldCom and market regulators which stopped short of agreeing a financial penalty over the telecom giant's $9 billion fraud case.
Under the terms of the settlement with the SEC, the bankrupt firm accepted allegations of fraud, a permanent injunction against further violations of securities laws and a comprehensive review of WorldCom's system of corporate governance.
"This shows the company has made laudable progress in moving towards a much more positive position and the correction of past mistakes," Judge Jed Rakoff said.
Mr Rakoff said the question of any monetary penalty would be decided by the court at a later date.
Four WorldCom executives have already pleaded guilty to accounting violations that led to WorldCom's application for bankruptcy protection - the largest in US corporate history - on July 22nd .
AFP