PHILADELPHIA, Feb. 19, 2002 (PRIMEZONE) -- Berger & Montague, P.C., (www.bergermontague.com) filed a class action against certain of the officers and directors of Global Crossing, Ltd (NYSE:GX) in the United States District Court for the Central District of California, on behalf of all persons or entities who purchased Global Crossing, common stock during the period from January 2, 2001 through October 4, 2001.
The Complaint charges certain of the officers and directors of Global Crossing with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule b0b promulgated thereunder by the Securities and Exchange Commission. 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 bandwith capacity with higher-margin, customized data services and the Company's ability to generate sufficient cash revenue to service its debt. 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.
However, 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. On that date, the Company issued a string of stunning announcements: cash revenues in the third quarter would be approximately $1.2 billion, $400 million less than the $1.6 million expected by a consensus of analysts surveyed by Thomson Financial/First Call. The cash revenue shortfall was purportedly the result of a "sharp falloff" in wholesale IRU sales to carrier customers. The Company further announced that it expected recurring adjusted EBITDA to be "significantly less than $100 million" compared to forecasts of $400 million. Following these announcements, Global Crossing's share price plunged by 49% to $1.07 per share. Plaintiff seeks to recover damages on behalf of all purchasers of Global Crossing common stock during the Class Period (the "Class"). The plaintiff is represented by Berger & Montague, P.C. which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
The law firm of Berger & Montague, P.C. has 55 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is has represented investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example: "Class counsel did a remarkable job in representing the class interests." In re: IKON Office Solutions Securities Litigation, Civil Action No. 98-4286 (E.D.Pa) (partial settlement for $111 million approved May, 2000).
"...(Y)ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here...I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 77-9 (N.D.Ill.) (settled in 1999 for $220 million).
If you purchased Global Crossing common stock during the period from January 2, 2001 through October 4, 2001, inclusive, you may, no later than April 5, 2002, move to be appointed lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as lead plaintiff. If you purchased Global Crossing common stock, or have any questions concerning this notice or your rights with respect to this matter, you may contact: Sherrie R. Savett, Esquire Barbara A. Podell, Esquire Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Telephone: (888) 891-2289 or (215) 875-3000 Fax: (215) 875-5715 Website: www.bergermontague.com e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca