Last month, for example, the judge overseeing the case stated that the prospectus in one WorldCom bond offering was false and misleading.

The California fund lost $565 million on WorldCom bonds and stock.

Also in a difficult position are the holders of $28 billion in WorldCom bonds.

The WorldCom bonds recently traded at about $350, down from an offering price of $1,000.

The settlements with the banks that helped sell WorldCom bonds totaled more than $6 billion.

Andersen is the last remaining corporate defendant in the case; others have already settled, including banks that sold WorldCom bonds to investors.

Citigroup, one of the firms that sold the WorldCom bonds, had been a defendant.

Those who have lost money in WorldCom bonds clearly seem to think this strategy might work - including Ohio, where three pension funds lost $136 million.

The firm was also a significant purchaser of WorldCom bonds.

Mr. Demming would not say whether a decision on WorldCom bonds had been made.