September 14, 2004 |
Fiber optic network operator Global Crossing Ltd., which exited bankruptcy protection in December, will restate its 2003 results, reversing an earlier decision that accounting mistakes could be fixed by taking a charge. Global Crossing will increase 2003 costs related to the use of other carriers' networks by $67 million, the company said. The restatement will increase Global Crossing's 2003 net loss before gains between Jan. 1 and Dec. 9 to $295 million from $230 million, the company said.
July 21, 2004 |
The U.S. Labor Department approved a $79-million settlement of a lawsuit brought by employees of Global Crossing Ltd. against former company executives including ex-Chairman Gary Winnick over management of its retirement plan. The proposed class-action settlement needs court approval, the Labor Department said Tuesday.
July 3, 2004 |
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.
June 24, 2004 |
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.
June 22, 2004 |
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.
May 4, 2004 |
Global Crossing Ltd., the fiber-optic network that listed on the Nasdaq Stock Market less than four months ago, said Monday that it might be delisted because of an accounting review. The company last week announced that it would restate last year's results and review its 2002 results. The company emerged from two years of bankruptcy protection less than six months ago. Global Crossing shares rose 15 cents to $7.30 on Nasdaq.
April 6, 2004 |
Gary Winnick, the former chairman of Global Crossing Ltd., must face a lawsuit accusing him of defaming a company finance executive who complained about the fiber-optic network operator's accounting, a judge ruled. U.S. District Judge Gerard Lynch in Manhattan refused to dismiss a claim that Winnick defamed Roy Olofson, former vice president of finance. Olofson complained in 2001 that the company had improperly accounted for phone-service swaps. He was later fired.
March 23, 2004 |
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.