Eleven former directors of WorldCom will pay more than $55 million, almost half from their own pockets, to settle a lawsuit alleging the company lied about its finances before selling bonds, a spokesman for New York Comptroller Alan Hevesi said on Friday. Hevesi is the lead plaintiff in a class action lawsuit by former investors in the once-highflying telecom company now known as MCI Inc. The directors will pay $20.25 million personally and the balance will come from insurance,
An earlier settlement agreement with some of the directors collapsed in February due to technical complications.
Earlier this week, plaintiffs in the suit reached a $2 billion settlement with J.P. Morgan Chase & Co; they had accused it and other banks of helping WorldCom sell bonds when they should have known it was lying about its finances.
Hevesi's office said it had not yet settled with former WorldCom chairman Bert Roberts and with Arthur Andersen, which was the company's auditor.
The plaintiffs plan to go to court with Roberts and Andersen. Jury selection could begin next week for a trial expected to last up to 10 weeks.
Former WorldCom Chief Executive Bernard Ebbers was convicted on Tuesday on charges he orchestrated an $11 billion accounting scandal that drove the company into bankruptcy.