NEW YORK, Feb. 3 (UPI) -- Ten former WorldCom Inc. directors are headed for a New York trial after their acceptance of a multimillion dollar settlement collapsed.
The proposed settlement, which obliged the 10 to pay $18 million of their own money, appeared to spare them a Feb. 28 trial that still includes as defendants two former directors who hadn't settled; the company's former auditor, Arthur Andersen LLP; and 17 banks that underwrote WorldCom securities.
But the judge hearing the case rejected a settlement provision that relates to how much those remaining defendants in the suit might have to pay if they lose the case, the Wall Street Journal said Thursday.
In response to the judge's decision, the New York State Common Retirement Fund withdrew from the settlement agreement.
Unless the 10 former directors can reach a new settlement with the fund that's acceptable to the judge, they apparently will stand trial Feb. 28.
