Global Crossing Ltd

Gary Winnick, the founder and former chairman of Global Crossing Ltd., must defend against claims that he and 22 former executives fraudulently misrepresented the fiber-optic company's finances, a federal judge ruled. A group of banks led by J.P. Morgan Chase & Co. sued Winnick in October for $1.7 billion, claiming he and the other ex-executives engaged in a "massive scam" to conceal Global Crossing's decline so it could borrow $2.25 billion two months before its collapse in 2002. U.S.

Global Crossing Ltd. founder Gary Winnick will be absolved by federal regulators for his role at the company that made him one of the richest men in Los Angeles -- and one of the most vilified executives in corporate America. An attorney for the Beverly Hills financier said Monday that the Securities and Exchange Commission would not file charges against Winnick after a three-year investigation into the telecommunications provider's accounting practices.

He didn't get the company, so he's settling for the headquarters instead. Los Angeles financier Tom Gores, who lost out on the bidding for fallen telecommunications giant Global Crossing Ltd., will soon own one of the firm's crown jewels: the posh Beverly Hills campus where Chairman Gary Winnick ran his empire from an oval office reminiscent of the one on Pennsylvania Avenue in Washington.

Global Crossing Ltd. founder Gary Winnick on Friday settled a lawsuit brought by ex-partner Douglas Shooker, who claimed Winnick owed him up to $1.1 billion under an oral agreement granting him a 15% slice of venture capital profits. Terms were not disclosed. The settlement brought an abrupt end to deliberations by a Los Angeles County Superior Court jury, which met for a fifth day Friday without reaching a verdict. "I'm glad this is over.

After a year in which record numbers of companies went bust trying to wire the world for the Information Age, Global Crossing Ltd.'s bankruptcy filing Monday may signal the end of big telecommunications failures, analysts say. "This is probably the last big bankruptcy for a while, but I think the fundamental problem for the telecom sector is, 'Where do you get growth and revenues from?'

Mexican billionaire Carlos Slim and his family have accumulated 9.1% of Global Crossing Ltd.'s common stock, the U.S. fiber optic network operator said Monday. Reasons behind the purchase were not immediately clear. Slim, Latin America's richest man who has acquired a slew of telecommunications assets throughout the region, is known for his ability to turn battered companies around. He could not be reached for comment.

A trustee for creditors of Global Crossing Ltd., which emerged from bankruptcy protection in December 2003, sued Canadian Imperial Bank of Commerce for $2 billion in alleged insider trading profits. The trustee accused Toronto-based CIBC of using inside information to illegally trade in the telecommunications company's shares, according to a lawsuit filed Tuesday in U.S. Bankruptcy Court in New York. The trustee is seeking to raise money for creditors still owed $6.

Global Crossing Ltd., the formerly bankrupt long-distance network operator, had a fourth-quarter loss of $27 million as sales fell 16%. The loss compared with net income of $24.9 billion a year earlier, when liabilities were erased during the restructuring, Bermuda-based Global Crossing said. Sales fell to $573 million. Shares of Global Crossing fell 43 cents to $15.28 on Nasdaq. Revenue for 2005 will be $1.8 billion to $1.

Fiber-optic network operator Global Crossing Ltd., which exited bankruptcy protection in December, said it would restate 2003 results after underestimating some liabilities. Its shares tumbled 27%. The restatement, which is tied to money Global Crossing may owe other carriers to use their networks, is the latest misstep for the company, which already is under investigation by regulators in a separate accounting matter.

Global Crossing Ltd. said an investigation by Deloitte & Touche found management wasn't aware of faulty accounting related to its 2003 results. The report found no "management integrity issues," Global Crossing said. Bermuda-based Global Crossing hired Deloitte to begin a probe after announcing in April that it underestimated some liabilities.

A U.S. District Court judge in New York gave preliminary approval to a $99-million settlement of a securities fraud lawsuit by shareholders of Global Crossing Ltd. against Goldman Sachs Group Inc. and 25 other investment banks. "The banks were targeted for their role as financial advisors to Global Crossing and its affiliate Asia Global Crossing in issuing securities in 2000 and 2001," Grant & Eisenhofer, a law firm representing the shareholders, said in a statement.

A trustee for creditors of Global Crossing Ltd., which emerged from bankruptcy protection in December 2003, sued Canadian Imperial Bank of Commerce for $2 billion in alleged insider trading profits. The trustee accused Toronto-based CIBC of using inside information to illegally trade in the telecommunications company's shares, according to a lawsuit filed Tuesday in U.S. Bankruptcy Court in New York. The trustee is seeking to raise money for creditors still owed $6.

* Microsoft Corp. warned users of its Windows operating system of three newly found "critical" security flaws in its software, including one that could allow attackers to take complete control of a computer. * A federal judge in New York dismissed claims that Microsoft Corp. and Softbank Corp., which sells high-speed Internet service in Japan, helped defraud investors in Global Crossing Ltd.

Global Crossing Ltd., which runs a high-speed fiber-optic network for sending calls and data, said its first-quarter loss narrowed to $107 million as costs to connect calls declined. The company had a loss of $109 million a year earlier. It didn't provide per-share figures for either period. Sales declined 21% to $526 million, Bermuda-based Global Crossing said. Global Crossing is shifting focus in an effort to win more contracts to handle services for big companies.

U.S. market regulators said Monday that they had settled allegations against Global Crossing Ltd. and three former executives, ending a three-year investigation of the company's financial reports from 2001.

A private equity firm owned by Beverly Hills financier Tom T. Gores said Monday that it had agreed to buy part of fiber-optic network owner Global Crossing Ltd. for $40.5 million. Platinum Equity will acquire Global Crossing's small-business unit, which serves about 30,000 small and medium-size companies, and meld it into its own telecommunications operations. Platinum's Matrix Telecom Inc.

Global Crossing Ltd., the formerly bankrupt long-distance network operator, had a fourth-quarter loss of $27 million as sales fell 16%. The loss compared with net income of $24.9 billion a year earlier, when liabilities were erased during the restructuring, Bermuda-based Global Crossing said. Sales fell to $573 million. Shares of Global Crossing fell 43 cents to $15.28 on Nasdaq. Revenue for 2005 will be $1.8 billion to $1.

Citigroup Inc. said Wednesday that it would pay $75 million to settle a lawsuit brought by investors over its role in the collapse of telecommunications network provider Global Crossing Ltd. Citigroup, which was one of Global Crossing's bankers, was accused in the class action of issuing hyped research reports and failing to disclose conflicts of interest. It said the settlement resolved claims of investors in Global Crossing and its Asia Global Crossing Ltd. affiliate from Feb. 1, 1999, to Dec.

Global Crossing Ltd. founder Gary Winnick will be absolved by federal regulators for his role at the company that made him one of the richest men in Los Angeles -- and one of the most vilified executives in corporate America. An attorney for the Beverly Hills financier said Monday that the Securities and Exchange Commission would not file charges against Winnick after a three-year investigation into the telecommunications provider's accounting practices.

Global Crossing Ltd. founder Gary Winnick and at least two other executives are likely to be fined under an agreement that will end a federal probe into the company's accounting, people familiar with the matter said Monday. The Securities and Exchange Commission plans to vote Thursday on the proposed settlement, which would allow the Hamilton, Bermuda-based company to avoid a penalty, said the people, who asked not to be named. They declined to say how much the executives would pay.