World Com – (2005) $6.2 billion
Written by Andrew Sarski on June 8, 2012
In 2005, World Com settled a class action lawsuit filed by investors who held stock in the company from April 29, 1999 through June 2, 2002. Fraud lawsuits were initiated against World Com and employees Bernard Ebbers (CEO), Scott Sullivan (CFO), David Myers (Controller) and Buford Yates (Accounting Director). These charges stemmed from allegations of improperly classifying expenses as “capital costs” and of inflating revenue statements with false entries. According to the SEC, the earnings and assets had been falsely stated by over $11 billion.