“Chilling” (What Directors Think of the Enron/Worldcom Settlements)

From Corporate Board Member magazine, March/April, 2005:

The news that 10 former directors of WorldCom (now MCI) and another 10 from Enron had agreed to pay a total of $31 million out of their own pockets to settle lawsuits jolted board members everywhere. The WorldCom deal unraveled in early February after a judge ruled that the settlements would increase what other defendants might have to pay. But that has done little to calm the fears of directors who had always believed that their insurance would cover them against any legal judgment. Statistics supported that faith (see “Worried About Shareholder Suits? Fuhgedaboudit,”which we ran a year ago).

See full Article.