WASHINGTON-WorldCom Inc., which is doing business under the name MCI, named five independent directors to its board late last month.
Laurence Harris is a partner at the law firm of Patton Boggs L.L.C. Harris was an executive of Teligent Inc., a fixed wireless startup that did not survive the technology bubble. He also lobbied for MCI from 1972 to 1982.
Judith Haberkorn is the retired president of consumer sales and service at the former Bell Atlantic Inc.
David Matlin is chief executive of MatlinPatterson Global Advisors L.L.C. MatlinPatterson is the largest WorldCom bondholder and will be one of MCI’s largest stockholders if its reorganization is approved.
Eric Holder was deputy attorney general in the Clinton administration and is now a partner with the law firm of Covington and Burling.
W. Grant Gregory is chairman of Gregory & Hoenemeyer, merchant bankers.
On Tuesday, AT&T Corp. filed a civil suit in federal court in Virginia. The suit refers to allegations that MCI-both before and after it merged with WorldCom-conspired with Onvoy Inc., a Minnesota-based local exchange carrier, to have AT&T pay access charges for calls that originated on MCI’s network. AT&T alleged the calls were passed through Canada and then dumped onto AT&T’s network before being delivered to the proper LEC.
“AT&T also maintains the scheme is ongoing, and that MCI and Onvoy continue to engage in the misconduct,” said AT&T in a statement. “The conduct alleged in the lawsuit involves a fraudulent call-routing scheme that is fundamentally different from and bears no relation to, legitimate routing practices widely employed in the telecommunications industry. That legitimate conduct involves long-distance companies obtaining the lowest access fees knowingly offered. In contrast, the lawsuit alleges that MCI/WorldCom used deception to cause AT&T unwittingly to pay the full access charges MCI/WorldCom should have incurred on a large number of calls.”
WorldCom hopes to commence its bankruptcy hearing Sept. 8 but AT&T, Verizon Communications Inc. and others have created static concerning whether it is fair for MCI to emerge without debt.
“The filing of the lawsuit is consistent with AT&T’s position that a reorganized MCI/WorldCom should operate on a fair and level playing field with its competitors,” said AT&T.
After settling with the Securities and Exchange Commission for $750 million, WorldCom is now facing criminal charges in Oklahoma and a civil suit in Oregon. Investigations by the Department of Justice, Congress and the Federal Communications Commission regarding MCI’s routing of calls are also continuing.
WorldCom is the parent to SkyTel Paging and was recently awarded a contract to build a private mobile-phone network in Iraq.
