SEATTLE--(BUSINESS WIRE)--June 27, 2002--Keller Rohrback L.L.P. (http://www.erisafraud.com/) has filed a 401(k) Breach of Fiduciary Duty class action against WorldCom, Inc. (NYSE:WCOM/WCOME) on behalf of participants and beneficiaries of WorldCom's 401(k) retirement plans from January 3, 2000 through the present (the "Class Period").
The complaint filed alleges that WorldCom, and its plan administrators, breached their fiduciary duties of loyalty and prudence. The complaint continues that the breach occurred when material information was withheld or concealed from the Plan participants and beneficiaries with respect to the Company's business, financial results and operations, thereby encouraging participants and beneficiaries to continue to make and maintain substantial investments in company stock and the Plans. To view a copy of the filed Complaint please visit Keller Rohrback's 401(k) ERISA fraud website at: www.erisafraud.com.
WorldCom's accounting practices have been under investigation by the Securities Exchange Commission ("SEC") since March 2002. Following WorldCom's disclosure that it had overstated its cash flow by $3.8 billion, the SEC filed federal fraud charges against WorldCom. The SEC court filing alleges that WorldCom created an accounting scheme intended to manipulate earnings. The SEC said that under this scheme WorldCom improperly booked so-called line costs, or the fees WorldCom paid to other communications companies to use their networks, as capital investments, which had the effect of masking losses.
Keller Rohrback is currently investigating 401(k) ERISA fraud allegations against Xerox (NYSE:XRX - News), Tyco (NYSE:TYC - News), CMS Energy (NYSE:CMS - News), Duke Energy (NYSE:DUK - News), Reliant Energy (NYSE:REI - News), and Halliburton Co. (NYSE:HAL - News). If you are a member of a WorldCom 401(k) retirement plan, a member of one of the other plans currently under investigation and wish to discuss this announcement, or have information relevant to these investigations, you may contact paralegal Jennifer Tuato'o, or any member of our team (Lynn Sarko, Derek Loeser, or Erin Riley) toll free at 800/776-6044, or via e-mail at investor@kellerrohrback.com.
Seattle's Keller Rohrback L.L.P. has successfully represented shareholders
and consumers in class action cases for over a decade. Its trial lawyers have
obtained judgments and settlements on behalf of clients in excess of seven
billion dollars. Keller Rohrback is currently serving as co-lead counsel for
participants and beneficiaries of the Enron Corp. 401(k) Savings Plan in which
similar issues are being litigated.
Keller Rohrback L.L.P.
Jennifer Tuato'o, 800/776-6044
investor@kellerrohrback.com
www.erisafraud.com
http://www.seattleclassaction.com/