New York (May 20, 2003) -- MCI, formerly WorldCom Inc., has agreed to pay $500 million to investors as part of an agreement with the Securities and Exchange Commission, resulting in the largest settlement ever imposed on a non broker-dealer company by the securities watchdog.

The agreement would effectively settle charges that MCI defrauded investors by inflating profits by more than $11 billion.A federal judge overseeing MCI's fraud case and a bankruptcy judge overseeing the company's Chapter 11 proceeding must still approve the settlement, according to a Wall Street Journal report.

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