Xbox Live Gold price increase Nvidia Shield update Third stimulus check details Microsoft AI chatbot patent Bernie Sanders' mittens memes Returning stimulus money to the IRS Galaxy S21 review

WorldCom's stumble shakes tech world

The telecommunications giant faces a March trial on SEC allegations of fraud. The aftershocks of $4 billion in improper accounting could hurt hardware sellers and corporate customers.

Thought you had seen it all after Enron? Think again. The revelation of WorldCom's accounting shenanigans--almost $4 billion worth--has the technology industry in shock. The company faces a March trial for alleged fraud.

WorldCom fraud trial set for March
The telecommunications company goes on trial in March for alleged securities fraud and a seasoned lawyer was appointed to prevent possible shredding of key documents.
July 3, 2002

WorldCom talking with banks to cover debt
The troubled long-distance and data services provider is scrambling to secure funding and more lenient terms on existing credit agreements.
June 28, 2002

Juniper caught in WorldCom firestorm?
The telecom equipment maker, which counts WorldCom as a major customer, may feel an impact from the accounting scandal for several quarters to come.
June 27, 2002

Congress subpoenas WorldCom execs
The subpoenas come as U.S. officials vow to tighten accounting regulations, with WorldCom being just one among a host of recent corporate scandals.
June 27, 2002

Tech world ducks and covers
After WorldCom, technology companies may be more closely scrutinized for a wide range of reasons, including ties to auditors and use of various earnings measures.
June 26, 2002

SEC wants answers
update Chairman Harvey Pitt says the securities agency is seeking an order to prevent the company from selling off assets, destroying documents and making hefty payouts to senior officers.
June 27, 2002

WorldCom gets amended ticker symbol
Shares of the company and its MCI unit, which were halted for trading Wednesday after WorldCom disclosed a $3.8 billion accounting scandal, are listed under new ticker symbols.
June 27, 2002

Bush pledges WorldCom investigation
update President Bush promises a full investigation of "outrageous" accounting irregularities at the company. Aides say he is "mad as hell" about the lack of corporate responsibility in America.
June 26, 2002

Harsh spotlight for new WorldCom chief
John Sidgmore has been promising a fresh start and a bright future for the telecom giant ever since he stepped in as chief exec nearly two months ago. That job just got a lot harder.
June 26, 2002

Customers scramble
With news of the company's financial shenanigans and its pending 17,000 layoffs, customers and partners are wondering whether it might be best to take their business elsewhere.
June 26, 2002

WorldCom: What future?
update With bankruptcy a possibility, Wall Street analysts begin handicapping the future of the company and conclude that there may not be much of one.
June 26, 2002

A $4 billion blunder
update WorldCom fires its CFO after discovering that the company had improperly accounted for almost $4 billion on its corporate balance sheets.
June 25, 2002

Telecommunications deflated
WorldCom's fall is the most dramatic comedown in an industry that over the past year has been collapsing into financial chaos.
June 25, 2002

previous coverage

After Andersen, accounting worries stick
While Arthur Andersen and Enron are on their way to becoming footnotes of American business, the bookkeeping questions they raised threaten to drag down tech companies.
June 17, 2002