WorldCom Handed Rules and Writ
The low point for the carrier, also known as MCI (Nasdaq: MCIT), came when Oklahoma's attorney general stung it with criminal charges. The state claims the company, and its most senior executives, defrauded investors by concealing the true facts about the operator's financial health.
True to form, the operator countered everything thrown at it by reiterating its ongoing strategy to overhaul the company and divorce itself from the Bernie Ebbers era.
WorldCom is already battling accusations of irregular traffic routing practices as it seeks to emerge from bankruptcy protection (see WorldCom Lashes Back, The Week at WorldCom: Chapter II, and The Week at WorldCom).
But the week began with WorldCom's acceptance of the 78 directives outlined in a report by the carrier's court-appointed corporate monitor Richard Breedon, a former chairman of the Securities and Exchange Commission (SEC) (see WorldCom Pats Self on Back). His directives aim to prevent any future financial discretion, and to instill a corporate culture of financial checks and processes that did not previously exist at WorldCom.
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— Ray Le Maistre, International Editor, Boardwatch