The state of Oklahoma has filed criminal charges against embattled telecommunications group WorldCom and six former executives including founder Mr Bernie Ebbers.
The charges, filed by Mr Drew Edmondson, Oklahoma's attorney-general, are the first against the company since it revealed a massive accounting fraud last year.
Federal prosecutors have concentrated on pursing the executives who committed the fraud. However, no charges have been brought against Mr Ebbers.
Mr Edmondson did not reveal any new evidence, and it is unclear how he plans to secure convictions that have so far eluded the US government. But Oklahoma's move could trigger more charges from other states. He said California, Oregon, West Virginia and Indiana were considering similar charges.
WorldCom, now renamed MCI, insisted it remained on track to emerge from bankruptcy later this year. "The action against the company would only punish our 20 million customers and 55,000 employees, 2,000 of whom work in Oklahoma," said Ms Stasia Kelly, the company's general counsel.