Quimbee logo
DMCA.com Protection Status
From our private database of 15,700+ case briefs...

Official Committee of Unsecured Creditors of WorldCom, Inc. v. Securities and Exchange Commission

United States Court of Appeals for the Second Circuit
467 F.3d 73 (2006)


Facts

The Securities and Exchange Commission (SEC) (plaintiff) brought a civil enforcement action against WorldCom, Inc. (WorldCom) (defendant). The SEC alleged that WorldCom had defrauded investors by overstating revenues. The parties reached a settlement that required WorldCom to pay a civil penalty of $750 million. The settlement also ordered disgorgement of $1, which opened the door to the return to the investors of the $750 million under the Fair Funds for Investors provision of the Sarbanes-Oxley Act of 2002 (Fair Funds provision). The SEC submitted to the United States District Court for the Southern District of New York a proposed plan for distribution of the funds. Because there was not sufficient money to cover all investors’ losses, the SEC excluded investors who had recovered at least 36 cents on the dollar through their sale of WorldCom securities or through WorldCom’s bankruptcy proceeding. This proportionate recovery amount was equal to the approximate amount that general creditors received. The district court approved the SEC’s distribution plan. The Official Committee of Unsecured Creditors of WorldCom, Inc. appealed.

Rule of Law

Issue

Holding and Reasoning (Sotomayor, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 333,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 15,700 briefs, keyed to 213 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.