Washington (Jan. 29, 2004) -- The company formerly known as WorldCom could sue Big Four firm KPMG for bad tax advice, Smith Barney for breach of fiduciary duty, and defunct accounting firm Arthur Andersen for negligent auditing, according to a report released this week.
The company, which is in bankruptcy court, could also sue its former chief executive, Bernard Ebbers, for breaches of fiduciary duties, as well as its remaining former directors, according to the 542-page report issued Jan. 26 by bankruptcy court examiner and former U.S. attorney general Richard Thornburgh. At the same time, the company, which is in bankruptcy court, could be owed hundreds of millions of dollars in state claims for back taxes, the report said.
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