{"page":"\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/resources-c03aa079.css\" /\u003e\n\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/lp_boclips_stylesheets-517835be.css\" media=\"all\" /\u003e\n\u003cdiv data-title='Andersen pays $65 million to settle WorldCom claims' data-url='/boclips/videos/5c54be91d8eafeecae13ca0a' data-video-url='/boclips/videos/5c54be91d8eafeecae13ca0a' id='bo_player_modal'\u003e\n\u003cdiv class='boclips-resource-page modal-dialog panel-container'\u003e\n\u003cdiv class='react-notifications-root'\u003e\u003c/div\u003e\n\u003cdiv class='rp-header'\u003e\n\u003cdiv class='rp-type'\u003e\n\u003ci aria-hidden='true' class='fai fa-regular fa-circle-play'\u003e\u003c/i\u003e\nVideo\n\u003c/div\u003e\n\u003ch1 class='rp-title' id='video-title'\u003e\nAndersen pays $65 million to settle WorldCom claims\n\u003c/h1\u003e\n\u003cdiv class='rp-actions'\u003e\n\u003cdiv class='mr-1'\u003e\n\u003ca class=\"btn btn-success\" data-posthog-event=\"Signup: LP Signup Activity\" data-posthog-location=\"body_link_boclips\" data-remote=\"true\" href=\"/subscription/new\"\u003e\u003cspan\u003e\u003cspan\u003eGet Free Access\u003c/span\u003e\u003cspan class=\"\"\u003e for 10 Days\u003c/span\u003e\u003cspan\u003e!\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-body'\u003e\n\u003cdiv class='rp-info'\u003e\n\u003cdiv aria-label='Hide resource details' class='rp-hide-info' role='button' tabindex='0'\u003e\u0026times;\u003c/div\u003e\n\u003ci aria-label='Expand resource details' class='rp-expand-info fai fa-solid fa-up-right-and-down-left-from-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003ci aria-label='Compress resource details' class='rp-compress-info fai fa-solid fa-down-left-and-up-right-to-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003cdiv class='rp-rating'\u003e\n\u003cspan class='resource-pool'\u003e\n\u003cspan class='pool-label'\u003ePublisher:\u003c/span\u003e\n\u003cspan class='pool-name'\u003e\n\u003cspan class='text'\u003e\u003ca data-publisher-id=\"30356011\" href=\"/search?publisher_ids%5B%5D=30356011\"\u003eCurated Video\u003c/a\u003e\u003c/span\u003e\n\u003c/span\u003e\n\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-description'\u003e\n\u003cspan class='short-description'\u003e1. Wide shot Federal Courthouse lower Manhattan2. Close-up sign on courthouse3. SOUNDBITE (English): Alan Hevesi, New York State Comptroller:\"I don't think Arthur Andersen has any credibility at all, I think they have widespread...\u003c/span\u003e\n\u003cspan class='full-description hide'\u003e1. Wide shot Federal Courthouse lower Manhattan\u003cbr/\u003e2. Close-up sign on courthouse\u003cbr/\u003e3. SOUNDBITE (English): Alan Hevesi, New York State Comptroller:\u003cbr/\u003e\"I don't think Arthur Andersen has any credibility at all, I think they have widespread culpability for this enormous system of false filings and even fraud in all these cases totalling them together that produced enormous damage to tens and tens of thousands of Americans who lost their jobs and pensions and to millions of Americans who lost share value because of the frauds.\"\u003cbr/\u003e4. Cutaway reporter\u003cbr/\u003e5. SOUNDBITE (English): Alan Hevesi, New York State Comptroller:\u003cbr/\u003e\"Arthur Anderson is not only the defendant in this case that they just settled. They are defendants in Worldcom, Enron, McKesson, Global Crossing, Qwest, Peregrine (Systems), Flag Telecom, Dynegy, which they settled two weeks ago for one million dollars, Household Finance Boston Markets, Sunbeam, and Charter Communications, plus fifteen other individual cases in which they are the defendants, and a number of other complaints that haven't reached the level of litigation. And if they're going to claim that they are the victims in every one of these cases, it's laughable.\"\u003cbr/\u003e6. Cutaway photographer\u003cbr/\u003e7. Medium shot Hevesi and another man walking down street\u003cbr/\u003e8. Cutaway photographer\u003cbr/\u003e9. Car drives off\u003cbr/\u003eDecimated auditing firm Arthur Andersen LLP paid 65 (m) million dollars (US) Tuesday to settle claims that it should have sniffed out the record-breaking fraud at the telecommunications company WorldCom.\u003cbr/\u003eThe settlement brought to $6.13 (b) billion the amount investment banks, auditors and former board members of WorldCom have paid to settle historic class-action claims by angry investors in the big telecom company.\u003cbr/\u003eThe combined settlement figure was described by lawyers in the case as nearly double the previous largest in a securities case. The deal halted a five-week-old trial, which was to go to the jury as early as next week.\u003cbr/\u003eNew York state Comptroller Alan Hevesi, the lead plaintiff, said the settlements have helped to recoup part of the \"huge amount of damage\" done to the US economy by the corporate scandals of the 1990s.\u003cbr/\u003eHevesi had charged that Andersen, eager to please WorldCom executives and line its pockets, failed investors by missing the enormous fraud at WorldCom in 2000 and 2001, when it served as independent auditor.\u003cbr/\u003eWorldCom's accounting fraud was estimated at 11 (b) billion dollars (US) by investigators - the largest in US history. It entered bankruptcy but has since re-emerged as MCI Inc., based in Ashburn, Virginia.\u003cbr/\u003eLawyers for Andersen had described the firm as full of hardworking auditors who were duped by an elaborately concealed fraud carried out entirely by corrupt WorldCom executives.\u003cbr/\u003eIndeed, in a statement Monday after the settlement was announced, Andersen said it was settling only to avoid the costs of litigation, \"and expressly denies any liability or wrongdoing.\"\u003cbr/\u003eAn irritated Hevesi told reporters Tuesday that anyone who believes the settlement exonerates Andersen \"should look in the mirror and say, 'What a fool I am.\"'\u003cbr/\u003e\"Their statements are blatantly false,\" he said. He then ticked off a series of accounting scandals with which Andersen has been associated, including WorldCom, Enron Corp. and Global Crossing Ltd..\u003cbr/\u003eBoth sides suggested as the settlement was announced that they believed they would have won had the case been decided by a jury.\u003cbr/\u003eLeonard Barrack, lead co-counsel for Hevesi, says the 6.13 (b) billion dollars in combined settlements is nearly double the previous record - 3.2 (b)  billion dollars (US) in an accounting fraud case involving Cendant Corp. in 2000.\u003cbr/\u003eAndersen, based in Chicago, is a shell of its former self. The firm had 24-thousand employees before the Enron scandal broke and now has only about 200.\u003cbr/\u003eLawyers for Hevesi said the settlement was reached only after Andersen agreed to open its books for inspection. They said the settlement amount reflected what Andersen was able to pay.\u003cbr/\u003eHevesi stressed that a jury verdict against Andersen could have bankrupted the firm, rendering it unable to pay much of anything, and said the 65 (m) million dollars (US) recovery was the best outcome for former WorldCom investors.\u003cbr/\u003eUS District Judge Denise Cote granted preliminary approval for the settlement during a brief hearing Tuesday morning, then dismissed the jury.\u003cbr/\u003e\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='action-container flex justify-between'\u003e\n\u003cbutton aria-expanded='false' aria-label='Read more description' class='rp-full-description' type='button'\u003e\n\u003ci class='fai fa-solid fa-align-left'\u003e\u003c/i\u003e\n\u003cspan id='read_more'\u003eRead More\u003c/span\u003e\n\u003c/button\u003e\n\u003cdiv class='rp-report'\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv aria-labelledby='resource-details-heading' 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