November 19, 2025
.jpg)
This year marks the 20th anniversary of the landmark $6.15 billion settlement in the WorldCom securities class action—a watershed moment in the history of investor protection and corporate accountability.
To commemorate this milestone, BLB&G is republishing a 2005 article written by key members of the firm who played pivotal roles in the case—Max Berger, Sean Coffey, and John Browne—which recounts in vivid detail the strategy, courtroom drama, and enduring impact of the litigation.
→ Read the article here.
At the time of the collapse, WorldCom’s fraud represented the largest corporate accounting scandal and bankruptcy in U.S. history. But what made the litigation truly groundbreaking was how the New York State Common Retirement Fund and its counsel—BLB&G and co-counsel Barrack Rodos & Bacine—approached the case before the Honorable Judge Denise Cote: aggressively, strategically, and with an unwavering commitment to investor recovery. The result was not only historic in size, but transformative in effect—setting precedent on discovery access, due diligence obligations, auditor liability, and the personal accountability of corporate directors.
“WorldCom proved that shareholder litigation can drive real change,” reflects Max Berger, BLB&G’s founding partner and senior partner in the case. “We didn’t just recover billions for defrauded investors—we helped rewrite the rules.”
For Sean Coffey, who served as the lead trial lawyer, the case continues to resonate profoundly. “The WorldCom case had many firsts, but what I’m most proud of is that our insistence on personal payments from the directors and top executives in settlement—a historic first—served as a wake-up call for corporate America and led to better oversight of the businesses in which our clients invested.”
John C. Browne, who was a BLB&G associate at the time, recalls the white-out document drama at trial as “a moment where everything crystallized—the evidence, the strategy, the stakes. It was a rare, unforgettable instance of courtroom truth.”
Looking back, BLB&G partners see the WorldCom case as a foundational moment. “It was one of the clearest examples of our model in action—client-led litigation, strategic pressure, and a steadfast commitment to securing meaningful results,” says Jerry Silk. Hannah Ross adds, “The case continues to inspire how we approach every matter today: with the same intensity, integrity, client partnership, and vision for systemic impact.”
Two decades later, the legacy of the WorldCom litigation lives on—in boardrooms, in courtrooms, and in the protections now afforded to investors everywhere.