A federal judge in Illinois Thursday approved the agreement, which may provide refunds for more than 5 million MCI long- distance customers, according to court records. The average refund is expected to be about $100 in cash.
Consumers sued in federal court in East St Louis, Illinois in 1999 alleging that MCI overcharged them under a long-distance dialing plan during a 4 1/2-year period starting in February 1996. The suit later won class-action status.
"I find absolutely no reason to reject the settlement," US District Judge David R Herndon said at a hearing, according to the StLouis Post-Dispatch.
Consumers' lawyers said they sent notices out to about 5.3 million households, but have only received 371,000 refund claims so far. Herndon approved US$25 million in fees for lawyers representing MCI customers.
Clinton, Mississippi-based WorldCom, acquired Washington, DC-based MCI in 1997 for stock valued at US$37 billion. WorldCom is second only to AT&T Corp as a long-distance provider.
WorldCom's shares fell US$0.38 to US$18.69 Friday. They've fallen 59 percent in the past year.
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