Federman and Sherwood alleged that one of those violations was in the handling of company stock held by participants of the WorldCom Inc. Investment Plus Plan.
The once giant telecommunications company has sought bankruptcy protection and has been hit with numerous lawsuits over the circumstances of its demise (see Participant Shareholders Strike Back at WorldCom )
Large investors such as pension funds also raced to court to sue the company and a group of prominent investment banks over millions in losses suffered on WorldCom’s financial collapse. (See Pension Funds to Sue Banks over WorldCom Bond Losses )
The latest lawsuit wants WorldCom to make up the plan losses resulting from any ERISA violations.