Ebbers to Settle Civil Litigation

Facing a potential prison sentence of 85 years for his conviction in the massive accounting fraud at WorldCom, former chief executive Bernie Ebbers agreed to pay $5 million and transfer the majority of his assets to a liquidation fund to settle all civil charges related to the company's $11 billion scandal. The trust would subsequently divest Ebbers' assets, including his Clinton, Miss., home and his ancillary business interests. The settlement stems from a class-action suit by WorldCom investors lodged against former executives and board members, in addition to securities underwriters and auditor Arthur Andersen. Although still subject to approval by a federal judge, the settlement stipulates that 75 percent of the sale proceeds would go to the class-action plaintiffs, with the remainder earmarked for MCI, the company that emerged after WorldCom's bankruptcy. Ebbers is scheduled to be sentenced July 13.