Milberg Weiss Announces Class Action Lawsuit Against WorldCom Investment Banks

Business Wire, March 21, 2003

Business Editors/Financial Analysts

RIVERDALE, Md.--(BUSINESS WIRE)--March 21, 2003

Seeking Hundreds of Thousands in Recovery from Major

Wall Street Banks and Auditor

The Maryland-National Capital Park and Planning Commission's public pension fund, representing more than $400 million in Park and Planning Commission employees' retirement savings, today announced a lawsuit to recover losses against the auditor and the major underwriters of WorldCom bonds purchased by the Fund.

The lawsuit was filed in Prince George's County Circuit Court by the law firm of Milberg Weiss Bershad Hynes & Lerach on behalf of the Maryland-National Capital Park and Planning Commission Employees' Retirement System. The suit calls for full recovery of losses relating to the purchases of the bonds. WorldCom's auditor, Arthur Andersen LLP, and 17 underwriters including CitiGroup, Salomon Smith Barney, J.P. Morgan, Bank of America Corp., Lehman Brothers, Goldman Sachs and Credit Suisse First Boston are named.

"Our retirement system is financially sound and continues to perform well in this market, however, the Board will not tolerate our members and beneficiaries being taken advantage of by Wall Street," said George H. Lowe, Jr., Chairman of the Park and Planning Commission Retirement System. "Our suit charges that the company clearly knew -- and the banks clearly had reason to know -- that the WorldCom books falsely portrayed the company's true financial picture." Lowe is concerned that the banks named in the lawsuit underwrote the bonds so that WorldCom could use the monies raised to avoid drawing down on the same banks' outstanding credit line to WorldCom.

"The Complaint filed on behalf of Maryland-National details extensive and widespread financial malfeasance by WorldCom executives and the underwriter banks. This sort of corporate and Wall Street misconduct places every public and private pension plan trustee on notice that the days of placing trust in Wall Street are over," added William S. Lerach, a managing partner for Milberg Weiss and counsel in this and many other major cases involving corporate fraud. "The lawsuit is not just an attempt to hold the company executives responsible. The trustees want the investment banking community to know they will not stand for this breach of the securities laws at the expense of pension fund beneficiaries."

The Planning Commission provides retirement and health services to 2,600 public servants.