According to Reuters, U.S. regulators charged WorldCom Inc. with fraud on
Wednesday, after the communications giant admitted it hid almost $4 billion of
costs, bringing it to the brink of bankruptcy in one of the biggest accounting
WorldCom's stocks and bonds caved on the news, and sent shock waves
throughout global markets.
In a civil lawsuit filed in federal court in New York, the Securities and
Exchange Commission charged WorldCom with acting to manipulate its earnings to
keep them in line with Wall Street's expectations.
The U.S. Justice Department, which has the power to bring criminal charges,
said Clinton, Mississippi-based WorldCom was under review, but reportedly
declined further comment.