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The Start of it All
Murray Waldron and William Rector plan to create a long distance service provider call Long-Distance Discount Service or LDDS. -
The First CEO
One of the first investors of LDDS, Bernard Ebbers, becomes the CEO of LDDS. -
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Mergers and Acquisitions
LDDS merges with Advanced Telecommunications Corp. in 1992. LDDS also acquires Resurgens Communications Group Inc. and Metromedia Communications Corp. in 1993 creating the fourth largest long-distance network in the US. In 1994, they acquire IDB Communications Group Inc. -
Becoming WorldCom
LDDS acquire Williams Telecommunications Group (WilTel) for $2.5 billion and then changes its name to WorldCom. -
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More Mergers
Between the years 1996-1998, WorldCom merges with MFS Communications Company, UUNet Technologies Inc., MCI Communications Corp.,Brooks Fiber Properties Inc., and CompuServe Corp. -
MCI WorldCom
The merger between MCI Communications and WorldCom was the largest corporate merger in US History. After announcing the merger, the new company was called MCI WorldCom. -
Sprint Merger
WorldCom and Sprint announce a $129 billion merger agreement. -
End of Sprint Merger
Opposition from the US Department of Justice and the European union on concerns a monopoly would be created led to the termination of the Sprint and WorldCom merger. -
WorldCom
MCI WorldCom renamed themselves to just WorldCom. -
The SEC gets involved
WorldCom receives a request from the SEC about information concerning accounting procedures and loans to officers. -
Job Cuts
WorldCom announces that they are going to be cutting 3,700 jobs in the US. This accounts for 4% of their overall work force. -
Decreased Ratings
S&P cuts WorldCom's long and short term credit ratings, Moody's cuts their long-term ratings and Fitch also cuts their ratings saying it expects WorldCom's revenues to decline during 2002. -
Ebbers Resigns
CEO Ebbers resigns amid the declining stock prices. Vice Chairman John Sidgmore takes over. -
Junk Status
S&P and Moody's cuts WorldCom's debt rating to junk status. S&P removes them from their S&P 500 Index just days later. -
Fraud is Uncovered
WorldCom's CFO is fired after uncovering improper accounting of $3.8 billion in expenses that covered up losses in 2001 and 2002. WorldCom also announces that they will cut 17,000 jobs. -
Trading is Halted
Nasdaq halts the trading of WorldCom Group and MCI Group. WorldCom shares dropped as low as 9 cents before trade was halted. A full investigation for the matter is now being called. -
Questionable Accounting Uncovered
WorldCom reveals that questionable accounting practices going as far back as 1999 have been uncovered in their internal investigation. -
Bankruptcy?
WorldCom CEO John Sidgmore announces that they only have enough cash to operate for 2 months and will more then likely have to file for bankruptcy protection. -
Bankruptcy Protection Filing
WorldCom files for bankruptcy protection listing $107 billion in assets and $41 billion in debt making it the largest filing in US history. Sidgmore says the company plans to emerge from this within a year. -
CFO and Controller arrested
WorldCom's former CFO Scott Sullivan and former Controller David Myers are arrested for their role in the fraud. They were charge on seven counts of securities fraud and filing false statements with the SEC. -
More Improper Accounting Discovered
WorldCom's internal auditors have uncovered an additional $3.8 billion in improper accounting making the amount of known errors be $7.6 billion. -
Sidgmore Steps Down
CEO John Sidgmore agrees to step down from CEO after many board members voted to have him removed. -
David Myers Pleads Guilty
WorldCom's former Controller, David Myers, pleads guilty to three counts of conspiracy, securities fraud, and making false statements to the SEC. -
SEC Expands Case
SEC claims that WorldCom's improper accounting goes back to at least 1999 and totals over $9 billion in fraudulent activity. -
Initial Settlement with SEC
WorldCom reaches an initial settlement with the SEC that they must continue to submit to federal oversight but the amount of a possible fine has not been reached. -
New CEO
Micheal Capellas is appointed to be the new CEO of WorldCom. -
Reorganization
WorldCom announces a reorganization plan that would rid them of most of their debt, rename themselves after MCI, and move their headquarters to Virginia. -
Settlements
WorldCom agrees to pay investors $500 million to settle any civil fraud charges. -
More Investigating
The Justice Department began to investigation about allegations that WorldCom improperly rerouted long-distance calls. -
New President & COO
Former AT&T Corp. executive Richard R Roscitt as its new President and COO -
Criminal Charges
Oklahoma Attorney General files criminal charges against WorldCom and 6 of its former executives. -
Bankruptcy Plan
WorldCom's revised bankruptcy plan is signed off on by a judge and sent out to creditors for approval. -
Reorganization Plan Approved
US Bankruptcy Judge Arthur Gonzalez approved WorldCom's reorganization plan. -
More Charges for Scott Sullivan
Prosecutors announce that they plan on showing that former CFO Scott Sullivan was involved in 13 types of accounting fraud in addition to what he had already been charged with. -
Suspension Lifted
The government lifts the suspension that kept WorldCom from receiving new federal contracts. -
Emerges from Bankruptcy
WorldCom is now MCI and they have officially emerged from the filing of the largest Chapter 11 bankruptcy in history. -
Settlement Announced
The plaintiff in the WorldCom class-action law suit announces a $54 million settlement that would cover 10 former directors. -
Bought by Verizon
Verizon Communications announces a $6.75 billion deal to buy MCI Inc. -
Bernard Ebbers found guilty
Bernard Ebbers is found to be guilty of all charges including conspiracy, securities fraud, and making false filing with regulators. He was sentenced to 25 years in prison.