| Company: | Global Crossing, Ltd. |
| Ticker Symbol: | NASD: GLBC |
| Class Period: | January 22, 2004 to April 26, 2004 |
| Court: | District, NJ |
| Date Filed: | Apr-30-04 |
| Lead Plaintiff Deadline: | Jun-29-04 |
| Allegations: |
A Class Action lawsuit has commended in the United States District Court for the District of New Jersey on behalf of all purchasers of securities of Global Crossing, Ltd. ("Global Crossing" or the "Company")
(Nasdaq:GLBC) between January 22, 2004 and April 26, 2004, inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint names as defendants Global Crossing, Lodewijk Christiaan Van Wachen, Peter Seah Lim Huat and John Leger. The Complaint alleges that defendants issued a series of materially false and misleading statements that operated as a fraud on purchasers of Global Crossing common stock during the Class Period.
More specifically the Complaint alleges that on December 9, 2003 Singapore Technologies Telemedia (ST Telemedia) and Global Crossing announced that they have consummated their purchase agreement, allowing a newly restructured Global Crossing to emerge from Chapter 11 proceedings. The December 9, 2003 press release stated that Global Crossing's plan of reorganization included the cancellation of existing preferred and common stock. The holders of these previously publicly traded securities received no consideration under the company's plan of reorganization. Global Crossing also reported that it, together with its independent auditor, Grant Thornton LLP, had finalized its audit of financial results for the years ended December 31, 2001 and December 31, 2002.
On January 22, 2004, Global Crossing announced that its new common stock would begin trading on the NASDAQ National Market, under the trading symbol GLBC. On March 10, 2004, Global Crossing reported its preliminary financial results for the fourth quarter and year ended December 31, 2003. In addition, the company announced several key milestones in 2003 and offered an outlook for 2004 "Today Global Crossing is a company with a clean balance sheet, minimal debt, strong corporate governance and a seasoned management team that will steer the company into a leadership position within the telecommunications industry," said John Legere, Global Crossing's chief executive officer. On March 26, 2004, Global Crossing filed its 2003 annual report on Form 10-K with the Securities and Exchange Commission.
On April 27, 2004, Global Crossing shocked the investing public by announcing that it plans to restate results for 2003 because it understated costs by at least $50 million to $80 million. Global Crossing said in the statement its previously reported results for 2002 and 2003, and its 2004 forecasts should be disregarded pending the outcome of its review. The company also said that it is assessing the internal control issues believes that these issues constitute a material weakness in its internal controls. Finally the Company said that pending the ongoing review and the restatement, Global Crossing is postponing its June 2004 shareholders meeting, the filing and mailing to shareholders of its proxy statement, and its earnings release and Quarterly Report on Form 10-Q for the first quarter of 2004.
The market's reaction to Global Crossing's disclosures was swift and severe. Following these disclosures, shares tumble $5 to $13.20. Volume, at 4.19 million shares, was more than six times the three-month daily average.
The Complaint alleges that throughout the Class Period, Global Crossing and the Individual Defendants made material misrepresentations with respect to the Company's financial results. More specifically, the defendants failed to disclose that (a) the Company understated between $50 million to $80 million of accrued cost of access liability; (b) the Company had inadequate internal controls; and (c) the Company's financial results were materially inflated at all relevant times Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Global Crossing securities during the Class Period.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint names as defendants Global Crossing, Lodewijk Christiaan Van Wachen, Peter Seah Lim Huat and John Leger. The Complaint alleges that defendants issued a series of materially false and misleading statements that operated as a fraud on purchasers of Global Crossing common stock during the Class Period.
More specifically the Complaint alleges that on December 9, 2003 Singapore Technologies Telemedia (ST Telemedia) and Global Crossing announced that they have consummated their purchase agreement, allowing a newly restructured Global Crossing to emerge from Chapter 11 proceedings. The December 9, 2003 press release stated that Global Crossing's plan of reorganization included the cancellation of existing preferred and common stock. The holders of these previously publicly traded securities received no consideration under the company's plan of reorganization. Global Crossing also reported that it, together with its independent auditor, Grant Thornton LLP, had finalized its audit of financial results for the years ended December 31, 2001 and December 31, 2002.
On January 22, 2004, Global Crossing announced that its new common stock would begin trading on the NASDAQ National Market, under the trading symbol GLBC. On March 10, 2004, Global Crossing reported its preliminary financial results for the fourth quarter and year ended December 31, 2003. In addition, the company announced several key milestones in 2003 and offered an outlook for 2004 "Today Global Crossing is a company with a clean balance sheet, minimal debt, strong corporate governance and a seasoned management team that will steer the company into a leadership position within the telecommunications industry," said John Legere, Global Crossing's chief executive officer. On March 26, 2004, Global Crossing filed its 2003 annual report on Form 10-K with the Securities and Exchange Commission.
On April 27, 2004, Global Crossing shocked the investing public by announcing that it plans to restate results for 2003 because it understated costs by at least $50 million to $80 million. Global Crossing said in the statement its previously reported results for 2002 and 2003, and its 2004 forecasts should be disregarded pending the outcome of its review. The company also said that it is assessing the internal control issues believes that these issues constitute a material weakness in its internal controls. Finally the Company said that pending the ongoing review and the restatement, Global Crossing is postponing its June 2004 shareholders meeting, the filing and mailing to shareholders of its proxy statement, and its earnings release and Quarterly Report on Form 10-Q for the first quarter of 2004.
The market's reaction to Global Crossing's disclosures was swift and severe. Following these disclosures, shares tumble $5 to $13.20. Volume, at 4.19 million shares, was more than six times the three-month daily average.
The Complaint alleges that throughout the Class Period, Global Crossing and the Individual Defendants made material misrepresentations with respect to the Company's financial results. More specifically, the defendants failed to disclose that (a) the Company understated between $50 million to $80 million of accrued cost of access liability; (b) the Company had inadequate internal controls; and (c) the Company's financial results were materially inflated at all relevant times Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Global Crossing securities during the Class Period.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
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