Class Action Settlement Only Reimburses Shareholders for a Small Fraction of Their Losses, Current and Former Shareholders Can Still Opt-Out of Class Action
NEW YORK, May 12, 2004 – LAWFUEL – Parker & Waichman LLP (www.worldcomstockfraud.com), is encouraging all current and former MCI WorldCom shareholders (OTC Pink Sheets: WCOEQ, MCWEQ, MCIA) and employees to evaluate their legal options before agreeing to participate in the recently announced MCI WorldCom class action settlement offer. Parker & Waichman believes that the proposed settlement does not sufficiently compensate victims of WorldCom stock fraud. The firm continues to believe that many current and former MCI WorldCom shareholders and employees may benefit from opting out of the class action to pursue individual claims. Parker & Waichman is offering free opt-out case evaluations at www.worldcomstockfraud.com.
Earlier this week Citigroup, Inc. (NYSE: C) announced it
would pay $2.65 billion ($1.64 billion after taxes) to
WorldCom investors for its role in the massive MCI WorldCom accounting fraud scandal. It is estimated that shareholders lost in excess of $100 billion on MCI WorldCom securities. Therefore, the proposed settlement will provide shareholders with less than 2 cents for every dollar lost. Parker & Waichman believes this settlement agreement does not provide adequate relief for MCI WorldCom shareholders and urges shareholders to determine if they would be better served by opting out of the settlement agreement.
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.
The previous February 20, 2004 opt-out deadline has been extended. No new opt-out deadline has been announced. 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.”
Parker & Waichman, LLP and affiliated counsel have filed thousands of claims on behalf of current and former MCI WorldCom shareholders and employees. For more information on Parker & Waichman, LLP please visit http://www.yourlawyer.com or call 1-800-LAW-INFO. Current and former shareholders are also encouraged to visit http://www.injurytalk.com.
David Krangle, Esq.
Parker & Waichman, LLP