NEW YORK – Three former executives at WorldCom Inc. (search) have reached a financial settlement with investors stemming from the collapse of the telecommunications company, according to court papers.
Former financial chief Scott Sullivan (search), former controller David Myers and ex-accounting director Buford Yates have agreed to settle a class-action suit with stock and bond holders, according to a memorandum from Manhattan federal judge Denise Cote on Monday.
Details of the proposed settlement were not released. The judge scheduled a hearing for Thursday to consider preliminary approval of the agreements.
The three former executives were the only remaining defendants in the class-action lawsuit, which is being overseen by New York State Comptroller Alan Hevesi (search) on behalf of other WorldCom investors.
Former WorldCom Chief Executive Bernard Ebbers (search) agreed last month to hand over most of his personal wealth, estimated at nearly $45 million, to settle the class-action case, while a group of investment banks that advised WorldCom previously settled for more than $6 billion.
A dozen former company directors and ex-auditor Arthur Andersen also agreed to settle the suit.
Ebbers was sentenced this month to 25 years in prison for his role in the $11 billion accounting fraud that drove the company into bankruptcy. He plans to appeal his conviction.
Sullivan, Myers and Yates, who all pleaded guilty to participating in the financial fraud at WorldCom, are set to be sentenced next month.