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Epilogue: WorldCom/MCI. Loss = $110B. WCOM once valued at $115 billion Settlements WorldCom paid $750 million civil penalty to SEC in 2003 Investment banks settled for over $6 billion ($2.6 from Citigroup) 830,000 individual and institutional investors received payments Postscript - PowerPoint PPT Presentation
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WCOM vs. S&P 500 vs. Peer: 10 Year Returns
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1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
WCOM
S&P
PEER
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Epilogue: WorldCom/MCI• WCOM once valued at $115 billion• Settlements
– WorldCom paid $750 million civil penalty to SEC in 2003
– Investment banks settled for over $6 billion ($2.6 from Citigroup)
– 830,000 individual and institutional investors received payments
• Postscript– Qwest and Verizon pursued acquisitions of MCI– Verizon acquired MCI on February 14, 2005 for $5.2
billion (Qwest bid was higher)
Loss = $110B
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Epilogue: Employees• Ebbers (CEO): 25 years• Sullivan (CFO): 5 years (plea)• David Myers (Controller): 1 year, 1 day• Buford Yates (Director of Accounting): 1 year, 1
day• Betty Vinson (Accounting Department Manager):
5 months prison, 5 months house arrest• Troy Normand (Accounting Department
Manager): 3 years probation
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