Catherwood LibraryILR School

In a chain of events all too similar to the Enron scandal, employees of World Com have seen their 401(k) pension plans take an enormous hit as the company stock in which many of them were heavily invested has dropped from sixteen dollars to twelve cents. Brought down by revelations that it overstated its corporate profits by almost $4 billion, WorldCom has been accused by employees of encouraging them to use their pension plans to buy company stock and discouraging sell-offs even as the company’s officers were trying to conceal the company’s accounting fraud. Although WorldCom did not prohibit employees from selling company stock as Enron did, a lawyer representing both Enron and WorldCom employees has said that a smoking gun similar to the Enron company videos encouraging employees to buy their employers’ stock, may yet be found in the WorldCom case.