July 21, 2002: Telecom giant WorldCom Inc. files for Chapter 11 bankruptcy protection in the largest such filing in U.S. history beating the Enron filing of 2001. WorldCom hit rough waters earlier in the year when new auditor KPMG uncovered accounting irregularities. WorldCom had hired KPMG to replace long-time accounting firm Arthur Andersen, which already was embroiled for its role in the Enron bankruptcy and scandal. The accounting fraud not only destablized WorldCom's stock and debt ratings ahead of the bankruptcy filing, but it also led to criminal charges for founder and former CEO Bernie Ebbers, and other executives. Following its 2003 exit from bankruptcy, the former WorldCom, which re-assumed the MCI name, was bought by Verizon in 2005. —Matthew Wurtzel
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