Tyco managers to pursue civil case
WEST WINDSOR, N.J. - The new management of Tyco International vowed that it will pursue civil litigation against former officers, regardless of the outcome of their criminal trial.
A judge in New York declared a mistrial Friday in the case of two former Tyco executives accused of looting the company of $600 million, citing intense outside pressure placed on one of the jurors.
The mistrial came after nearly six months of testimony and 11 days of deliberations in the case against former Chief Executive L. Dennis Kozlowski and former Chief Financial Officer Mark Swartz. Prosecutors said they would seek a retrial.
Citigroup settles with $2.65 billion
NEW YORK - In one of the largest securities fraud settlements ever, financial services giant Citigroup Inc. has agreed to pay $2.65 billion to settle a class action suit brought by investors who bought WorldCom Inc. securities before the telecommunications company went bankrupt in 2002.
It was the second biggest settlement of a securities class action case ever, after a $3.2 billion settlement by services giant Cendant Corp. in 2000. Citigroup will take an after-tax charge for the settlement and the increase in litigation reserves of $4.95 billion, or 95 cents per share, in the current quarter.
MCI says it will eliminate jobs
MCLEAN, Va. - MCI, the scandal-ridden company once known as WorldCom, reported a quarterly loss of $388 million Monday and said it will eliminate 7,500 jobs this year, or about 15 percent of its work force.
The earnings report was the first for MCI since it emerged from bankruptcy last month.
The $388 million loss compared with a profit of $52 million in the same quarter last year. The company said the weaker performance stemmed from intense price competition in the industry.