A US judge has set a March trial date for scandal-plagued telecommunications group WorldCom on alleged securities fraud.
In a late development on US House Financial Services Committee withdrew two key witnesses from a hearing scheduled for next Monday for fear their testimony could compromise other investigations into WorldCom.
Shares in the company more than doubled in Nasdaq trading, albeit only going to 22 cents from 10 cents, a day after new chief executive Mr John Sidgmore apologised for the scandal and said he was confident the company would not go bankrupt.
US District Judge Jed Rakoff set March 31st 2003 as the tentative date for the Securities and Exchange Commission (SEC) to begin presenting its case accusing WorldCom of violating securities laws by covering up $1.22 billion in losses by improperly booking $3.85 billion in expenses.
The SEC is seeking unspecified monetary penalties and to bar the company from violating securities laws again.
"I want a hands-on monitor who will report to me what's going on," Judge Rakoff said, adding that Mr Breeden will be free to "look into every nook and cranny to fulfill his function."
Mr Breeden's appointment follows allegations that bankrupt energy trader Enron's auditor, Andersen, and telecommunications provider Global Crossing shredded documents that could have shed light on the companies' accounting methods. Enron also awarded bonuses to key staffers as the energy company's problems deepened.