Shares Plunge over US Scandal; WORLDCOM: Telecoms Giant Uncovers Pounds 2.5bn Accounting Fraud

Beginning of article

Byline: SI'N BARRY

SHARES on the London Stock Exchange plummeted yesterday following the news that US telecoms giant, Worldcom, had uncovered a pounds 2.5bn accounting fraud.

An investigation by the US company's WorldCom's board of directors has uncovered nearly $3.8bn (pounds 2.5bn) in improperly booked expenses, revealing what appears to be one of the largest cases ever of accounting fraud.

WorldCom's chief financial officer, Scott Sullivan, has been sacked and trading in Worldcom shares have been suspended.

The news that one of the US's biggest companies was in such dire straits sent shock waves through the London Stock Exchange, …