10 ex-directors of WorldCom to pay $18mn

Ten former directors of WorldCom, the telecommunications company whose bankruptcy was the largest in history, have agreed to pay $18 million of their own money to settle a class-action lawsuit by investors who lost hundreds of millions of dollars when the company collapsed in July 2002.

According to a report on the website of NYTimes, the agreement, which is part of a $54 million settlement led by the New York State Common Retirement Fund, is a remarkable concession. Directors have always relied on their company's insurance to cover costs associated with securities cases and settlements.

The directors neither admitted nor denied wrongdoing, the report added.