WorldCom

WorldCom, Inc. was a United States telecommunications company that grew rapidly in the 1990s as a major long-distance carrier. The company began as MCI Communications Corporation and, after WorldCom acquired MCI in 1998, the merged firm adopted the WorldCom name and expanded into data services and networking.

In 2002, WorldCom revealed that it had overstated assets by about $11 billion, by improperly charging operating expenses to capital expenditures. The accounting scandal led to restatements, regulatory scrutiny, and criminal charges against senior executives. CEO Bernard Ebbers was later convicted of fraud and conspiracy and sentenced to 25 years in prison.

WorldCom filed for Chapter 11 bankruptcy in July 2002, marking the largest bankruptcy filing in U.S. history at that time. The company reorganized under the bankruptcy process and, by 2003–2004, operated as MCI, Inc. In 2006, Verizon Communications acquired MCI, and the business units were integrated into Verizon's enterprise services.

WorldCom's collapse prompted increased focus on corporate governance and contributed to the passage of the Sarbanes–Oxley Act of 2002.