ATLANTA, Feb. 15, 2002 (PRIMEZONE) -- Holzer & Holzer announced today that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Global Crossing Ltd. ("Global Crossing") (NYSE:GX) common stock during the period between Jan. 2, 2001 and Oct. 4, 2001 (the "Class Period"). A copy of the complaint filed is available from the Court or by contacting Holzer & Holzer (toll-free) at (888) 508-6832 or by sending an e-mail to michaelfisteljr@msn.com.
The complaint alleges that Global Crossing and certain of its officers and directors violated the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued false and misleading statements and press releases concerning Global Crossing's financial statements, their ability to offset declining wholesale demand for bandwidth capacity with higher-margin, customized data services and the Company's ability to generate sufficient cash revenue to service its debt. The Complaint further alleges that during the Class Period, before the disclosure of the true facts, the Individual Defendants and certain Global Crossing insiders sold their personally held Global Crossing common stock generating more than $149 million in proceeds and the Company raised $1 billion in an offering of senior notes.
The Complaint alleges that the full extent of Global Crossing's cash flow crisis, and its failure to compete in the market for customized communications services, began to emerge on Oct. 4, 2001, when the Company issued a string of stunning announcements including the statement that cash revenues in the third quarter would be approximately $400 million less than the $1.6 billion expected by a consensus of analysts. The Company further alleges that the Company announced that it expected recurring adjusted EBITDA to be "significantly less than $100 million" compared to forecasts of $400 million. Following these announcements, the Complaint alleges, Global Crossing's share priced plunged by 49% to $1.07 per share.
If you purchased securities in Global Crossing during the Class Period set forth above, you may, no later than April 5, 2002, move the Court to serve as a lead plaintiff in the action. In order to serve as a lead plaintiff, however, you must meet certain legal requirements. If you have any questions about your rights with respect to this lawsuit, you may contact Holzer & Holzer, Michael I. Fistel, Jr., Esq. (toll-free) at (888) 508-6832, or inquire via e-mail to michaelfisteljr@msn.com.
Holzer & Holzer has substantial experience representing investors in securities fraud class action lawsuits such as this. Holzer & Holzer is located in Atlanta, Ga., but represents investors in securities class action lawsuits throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call the Firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca