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Top N.Y. Aide Seeks WorldCom Data

October 3, 2002

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ALBANY, N.Y. (AP) _ New York Comptroller H. Carl McCall, leading a shareholder lawsuit against WorldCom Inc., is seeking copies of all documents the telecommunications giant has given government officials and private investigators.

A hearing on the request, submitted Wednesday in U.S. Bankruptcy Court in Manhattan, is set for Oct. 29.

McCall needs permission from the bankruptcy judge handling WorldCom’s case before he can submit the request in U.S. District Court, for the class action civil suit, McCall spokesman Jeffrey Gordon said.

The motion asks for copies of all documents provided to federal agencies, such as the Securities and Exchange Commission and Justice Department, produced by the company’s own investigators and transcribed from congressional depositions.

WorldCom spokeswoman Julie Moore declined to comment, citing company policy against discussing pending litigation.

McCall filed papers July 2 to lead the shareholder lawsuit against WorldCom, some of its officers and its accounting firm, Arthur Andersen LLC. The action followed a $300 million loss for the $105 billion state pension fund on WorldCom holdings, its largest loss ever.

McCall is the sole trustee of the state and local government pension fund, which covers about 1 million current and future public employee retirees.

U.S. District Judge Denise Cote appointed New York’s pension fund the lawsuit’s lead plaintiff in mid-August.

An Arthur Andersen spokesman did not immediately return a request for comment.

WorldCom declared the largest Chapter 11 bankruptcy in U.S. history July 21, after officials admitted the company hid more than $3.8 billion in expenses during 2001 and the first quarter of 2002.

Since then, WorldCom officials have revised the amount of accounting improprieties up to $7.1 billion.

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On the Net:

http://www.osc.state.ny.us

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