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Settlement against former WorldCom directors collapses

A judge yesterday ruled that a crucial aspect of a proposed settlement between former WorldCom directors and shareholders was illegal because it would have limited the directors' liability and exposed investment banks involved to greater risks. The ruling scuttles the groundbreaking settlement proposal whereby former directors agreed to pay $18 million out of their own pockets to settle the lawsuit. Washington Post, The (2/3), NYTimes.com (2/3), Chicago Tribune (2/3)