WASHINGTON, Feb. 25, 2002 (PRIMEZONE) -- The Law Office of Mark McNair announces a securities class action lawsuit has been filed against Global Crossing Ltd. (NYSE:GX) (OTCBB:GBLXQ) and its top officers on behalf of investors who purchased Global Crossing stock between January 2, 2001 and October 4, 2001. The Company is now in bankruptcy.
This lawsuit, like similar lawsuits that have been filed against Global Crossing, is on behalf of all shareholders who purchased Global Crossing stock during the Class Period. Thus, it is not necessary for investors who purchased stock during the Class Period to take any action at this time unless they wish to be the Lead Plaintiff. The deadline for those investors who wish to file a Lead Plaintiff Motion is April 5, 2002.
Congress adopted the Lead Plaintiff provision in 1995 so that judges would put investors with large losses in control of the litigation. Since then, an increasing number of investors with significant losses are stepping forward to become the Lead Plaintiffs and the average size of settlements grown significantly. To serve as Lead Plaintiff, you must meet certain legal requirements.
The Law Office of Mark McNair recognizes that many investors with significant losses are uncertain about the class action process. Generally, such investors have never participated in a class action case and they are unclear whether they should take an active role in a case. The Law Office of Mark McNair specializes in working with such individuals and institutions and would be happy to review this process with you.
The complaint against Global Crossing alleges that five top Global Crossing managers with artificially inflated earnings by improperly recording and reporting cash and revenue from certain long-term lease contracts for the rights to use the company's fiber optic cable network. Moreover, the Company was carrying an increasingly heavy debt burden and thus was forced to drastically lower its prices. While the Company was experiencing these problems Global Crossing insiders sold more than $149 million in stock. But the facts began to emerge October 4, 2001 when the Company announced that its third quarter 2001 cash revenues were $400 million below expectations and that its expected recurring adjusted EBITDA would fall almost $300 million less than analyst expectation. These developments stunned the market and Global Crossing stock dropped 49%.
To review the complaint and/or sign up online: http://www.justice4investors.com.
If you have any questions, please contact Mark McNair at 1101 30th Street PN.W. Suite 500, Washington, D.C, 20007 by telephone at (877) 511.4717 or (202) 872.4717, via e-mail at mcnair@justice4investors.com or visit our Website www.justice4investors.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca