WorldCom announces settlement with SEC

Telecom company, WorldCom Inc, announced that it has consented to entering a permanent injunction that will resolve claims brought in the Securities and Exchange Commission's civil lawsuit regarding WorldCom's past accounting practices.

While the company stressed that it neither admits nor denies the allegation, it agreed to the following conditions:

* not to violate securities laws in the future;

* to provide reasonable training and education to its senior, operational officers and financial reporting personnel to minimize the possibility of future violations;

* to retain a consultant to review the effectiveness of WorldCom's material internal accounting control structure and policies;

* and that the Corporate Monitor in the case will review the adequacy and effectiveness of WorldCom's corporate governance and ethics policies.

The company also agreed that the SEC ot the court may in the future seek a civil penalty to be paid by WorldCom or further equitable relief or sanctions.

According to WorldCom president and CEO, John Sidgmore: "This settlement is a significant milestone in WorldCom's restructuring efforts.

"Resolution of this litigation enables our company to move even more confidently toward a successful conclusion of the company's financial restructuring."