New York (July 2, 2004) -- In a victory for the Big Four firm, a U.S. bankruptcy judge here denied a motion by 14 states to bar KPMG from continuing as MCI's auditor and ordered the company, formerly known as WorldCom, to resume payments to the firm.

Back in March, 14 states, led by Massachusetts, called for KPMG to be disqualified as WorldCom's auditor and requested that KPMG give up $146 million in fees that it received or applied for from the company, which filed the largest bankruptcy in history in July 2002. MCI's payments to KPMG had been suspended since the states filed their complaint.

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