LITTLE ROCK, Ark., March 7, 2002 (PRIMEZONE) -- The Emerson Firm, a securities trial law firm with offices in Houston, Texas and Little Rock, Arkansas announced today that a class action has been filed in the United States District Court for the Western District of New York on behalf of purchasers of Global Crossing, LTD. (NYSE:GX) (OTCBB:GBLXQ) ("Global" or the "Company") common stock during the period between April 28, 1999 and October 4, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be obtained from the Firm.
The complaint charges certain of Global's officers and directors violated the Securities Exchange Act of 1934. The complaint charges that during the Class period, defendants 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 October 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 $1000 million" compared to forecasts of $400 million made several times earlier in the year. Following this series of announcements, Global's share price 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 bought Global common stock between April 28, 1999 and October 4, 2001, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than April 5, 2002. If you are a member of this class, you can join this class action by contacting The Emerson Firm by phone at 501-907-2555. Any member of the purported class may move the Court to serve as lead plaintiff through The Emerson Firm or other counsel of their choice, or may choose to do nothing and remain an absent class member.
The Emerson Firm has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Arkansas and Texas, but represents investors 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 or e-mail the Firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.