NEW YORK (AP) — A federal judge gave preliminary approval Tuesday to a deal under which auditor Arthur Andersen LLP will pay $65 million to settle allegations it failed to protect investors from WorldCom's historic accounting fraud.
"Congratulations are in order," Judge Denise Cote told lawyers just before giving her approval.
The settlement brings to a close a class-action lawsuit by investors that also laid blame on major investment banks that underwrote WorldCom securities and 12 former directors of WorldCom itself.