Vivien v. WorldCom, Inc. The Complaint alleged that the WorldCom Retirement Plan administrators were WorldCom insiders who knew or had reason to know that the price of WorldCom stock was artificially high because public statements concerning the Company's business and prospects were false or misleading to investors. When the facts became public, the stock plummeted, thus resulting in the near total loss of retirement funds. The allegations of fraud and artificial inflation of WorldCom's stock price formed the basis for a lawsuit brought by investors under the securities laws, but that suit offered inadequate chance for recovery for WorldCom employees who invested in company stock in their k plan.
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WorldCom Case Study Update - Markkula Center for Applied Ethics
The fraud is committed without the knowledge of owners shareholders and investors to benefit the individuals perpetrating or committing the fraud and results in a negative impact on the owners. Disclaimer: This work has been submitted by a student. This is not an example of the work written by professional academic writers. Here you can order a professional work. Find a price that suits your requirements. This report will give a brief background on WorldCom and the telecommunications industry, and then discuss the details of the WorldCom accounting fraud in order to provide relevant recommendations to Berkshire Hathaway, Inc.
Court Approves WorldCom Plan
District Judge Barbara Jones said she was giving Sullivan a break because he had helped the government build its case against ex-CEO Bernard Ebbers and because his wife is extremely ill. Sullivan, I believe, was the architect of the fraud at WorldCom. His sentence is topped only by that of Ebbers, who got 25 years. I truly am, Your Honor. Sullivan was ordered to report to prison Nov.
Please join StudyMode to read the full document. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. Many people may question if there is a secret to operating a successful business in modern times. Some may argue that success is based on being at the right place at the right time with the right idea and the right amount of money. Other may debate that success is based on hard work and ethics that are accompanied by many failed attempts before the right opportunity one comes along.