WorldCom Lawsuit

By: Associated Press
By: Associated Press

The Arthur Andersen accounting firm has settled a lawsuit over its role in the huge accounting scandal at WorldCom.

Arthur Andersen was the telecom company's outside auditor, and WorldCom investors sued Andersen, claiming that it violated securities laws by failing to protect them from WorldCom's $11 billion accounting fraud.

Details of the settlement have not been released just yet. The deal has interrupted a trial on a class-action lawsuit stemming from WorldCom's record bankruptcy in 2002.

Major banks and 12 former WorldCom board members reached earlier settlements with the shareholders.

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