Due Diligence Standards for Underwriters after WorldCom. Corporate Governance Advisor. Vol. 13, No. 2. March-April, 2005.
By Thomas Zaccaro
The recent summary judgment decision in In re WorldCom, Inc. Securities Litigation (WorldCom) exposes a stark asymmetry between the legal duties of underwriters and realities of practice. The opinion of the Honorable Denise L. Cote of the US District Court for the Southern District of New York seemingly is premised on the determination that underwriters have a responsibility to complete exhaustive due diligence despite the time pressures of condensed shelf-registration statements.