MCI WorldCom

MCI WorldCom was a major telecommunications company formed in the 1990s from a merger between MCI Communications and WorldCom. It rapidly grew to become one of the largest providers of long-distance phone services and internet access. However, in 2002, it was involved in one of the largest accounting scandals in U.S. history, revealing that it had inflated its earnings by billions of dollars. This led to bankruptcy, significant job losses, and legal repercussions for executives. The scandal highlighted issues in corporate governance and accounting practices, prompting reforms in regulations to enhance financial transparency in corporations.