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NEW YORK (AP) – Four investment banks on Friday became the latest to settle claims stemming from a class-action lawsuit brought by former shareholders of WorldCom Inc.

Alan G. Hevesi, New York state’s comptroller, said in a statement that he had reached an agreement with Lehman Brothers Inc. of New York for $62.7 million. Three other investment banks each agreed to pay $12.54 million. They are Credit Suisse First Boston, a unit of the Zurich-based Credit Suisse Group; Goldman, Sachs & Co. of New York, and UBS Warburg LLC of Stamford, Conn.

All four participated as underwriters in WorldCom’s May 2000 bond offering, Hevesi said.

Among the institutions that haven’t yet settled are JPMorgan Chase & Co., the nation’s second largest financial institution. Divisions of a number of foreign banks, including Frankfurt-based Deutsche Bank AG, and Amsterdam-based ABN AMRO Bank, also haven’t settled.

In announcing the settlement, Hevesi said “we commend these four investment banks for putting this issue behind them.”

He added that his office was “willing to talk with other defendants about potential settlements” but otherwise would pursue the case in court starting March 17.

The agreement was announced after the close of trading on Friday. Lehman Brothers shares rose $2.02, or more than 2 percent, to close at $93.02 on the New York Stock Exchange. Credit Suisse Group’s shares were up 98 cents, or more than 2 percent, at $45.13, and Goldman Sachs shares advanced $2.12, or 1.9 percent, to $111.53, also on the Big Board.

AP-ES-03-04-05 1752EST


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