BALA CYNWYD, Pa., Feb. 21, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: A securities class action lawsuit pending in the U.S. District Court for the Western District of New York (02-CV-6067) claims that Global Crossing, LTD. ("Global" or the "Company") (NYSE:GX) (OTCBB:GBLXQ) misled shareholders about its business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought Global Crossing, LTD. securities between April 28, 1999 and October 4, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Global Crossing, LTD. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at www.sbclasslaw.com.
The complaint alleges that the New York-based Global Crossing, LTD., during the Class Period, issued false and misleading statements, press releases, and SEC filings concerning Global's financial condition, as well as the Company's ability to generate sufficient Cash Revenue from new revenue sources considering the failing market for broadband access. Prior to the disclosure of Global's true financial condition, the Individual Defendants and other Global insiders sold holdings of Global's common stock for proceeds of more than $149 million. In addition, during the class period defendants caused the Company to sell notes on favorable terms to itself, which generated $1 billion in investor capital.
On Oct. 4, 2001 Global announced that Cash Revenues in the third quarter would be approximately $1.2 billion, $400 million less than the $1.6 billion expected by analysts and forecast several times earlier in the year by defendants. In addition, Global and the defendants stated that they expected recurring adjusted EBITDA to be ``significantly less than $100 million'' compared to forecasts of $400 million made several times earlier in the year. Following this series of announcements, Global's share priced plummeted nearly 50% to $1.07 per share on extremely heavy trading volume. Subsequently, with its stock trading at well under a dollar per share of common stock, Global filed for Chapter 11 Bankruptcy protection on January 28, 2002 after becoming unable to service its debt.
If you purchased Global Crossing, LTD. securities between April 28, 1999 and October 4, 2001, you may be a member of the class and have until April 5, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca