WorldCom defendants agree to settlement

Citigroup, JPMorgan Chase and 12 other banks will pay $639 million to investors to settle claims that the banks should have uncovered WorldCom’s accounting fraud before selling its bonds, the investors’ lawyers said Thursday. The settlement with 65 retirement funds is separate from the $ 6.1 billion that the same WorldCom underwriters and former directors have agreed to pay since May 2004 to resolve a class- action lawsuit. The funds opted out of the broader fraud case to press their claims individually. The total settlement is valued at $651 million, with WorldCom’s former auditor Arthur Andersen paying $8 million and insurance for former board members covering $4 million.

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Verizon Communications said earnings rose 4.1% as newservices and discounts lured wireless and high- speed Internet customers. Net income rose to $ 1.87 billion, or 67 cents a share, from $ 1.8 billion, or 64 cents, a year earlier. Results were on target with most forecasts. . . . posted a wider third-quarter loss on escalating programming costs, but subscriptions to its pay- radio service doubled to more than 5 million. The net loss rose to $ 131.9 million, or 60 cents a share, from $ 118.0 million, or 59 cents a share, a year earlier. . . . reported a wider thirdquarter loss as charges related to its reality TV show offset a rise in publishing-division revenue. The net losswas $ 26.07 million, or 51 cents a share, vs. a loss of $ 14.97 million, or 30 cents a share, a year earlier. . . . reported third-quarter pro D t jumped 30% as strong sales of car plastics and construction materials offset record energy costs. Net income rose to $801 million, or 82 cents a share, from $617 million, or 65 cents, a year earlier. Results surpassed Wall Street expectations of earnings at 75 cents a share. Stewart Living Omnimedia Dow Chemical third- quarter XM Satellite Radio Martha Compiled from Reuters, AP, Bloomberg News reports