Latest WorldCom settlement sees two US firms haul in $194m in fees

BARRACK Rodos & Bacine of Philadelphia and Manhattan’s Bernstein Litowitz Berger & Grossmann reaped more than $194m (£109.9m) in fees from the latest WorldCom settlement.

A US federal judge approved more than $3.5bn (£1.98bn) for WorldCom investors, taking the total compensation to $6.1bn (£3.45bn) and bolstering the two firms’ attorney fees to $335m (£190m) after they had logged 277,862 hours. Among the defendants were 17 underwriters, 12 WorldCom directors, former auditor Arthur Andersen and the now notorious former chief executive officer Bernard Ebbers and ex-chief financial officer Scott Sullivan.

The settlements compensate more than 800,000 individual and institutional investors as a result of WorldCom’s collapse in 2002.

Meanwhile, the embattled Delta Air Lines used Atlanta’s Alston & Bird (which billed Enron around $70m (£39.6m) for legal work on its bankruptcy) for advice as it works through Chapter 11 bankruptcy proceedings.