Secured $448 million in partial settlements for investors in Global Crossing securities fraud action
Plaintiff(s):
G&E represented two public pension funds as lead plaintiffs on behalf of a class of shareholders
Case type / claims:
Federal securities fraud class action against Global Crossing, Ltd. involving the failed business plan of the telecom company and the eventual swapping of telecom capacity with other telecom companies.
Defendant(s):
Global Crossing, Ltd., former officers and directors (including Chairman and founder Gary Winnick), Arthur Andersen LLP, former outside counsel, multiple investment banks that underwrote offerings.
Jurisdiction:
U.S. District Court for the Southern District of New York
Year:
2006
Outcome:
- Achieved $448 million in total settlements for the class.
- Secured a $30 million personal contribution from Global Crossing’s founder and Chairman Gary Winnick.
- Obtained additional settlements from the company’s auditor, former outside counsel, and a group of investment banks involved in Global Crossing’s public offerings.
