NEW YORK, July 11, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of New York, civil action number 02 cv 5339, on behalf of purchasers of Global Crossing Ltd. ("Global Crossing") (NYSE:GX) securities between June 15, 1999 and November 10, 2001, inclusive (the "Global Crossing Class Period"). A class action complaint was also filed in the Southern District of New York, civil action number 02 cv 5127, on behalf of purchasers of WorldCom, Inc. ("WorldCom") (Nasdaq:WCOM) securities between July 3, 1999 through April 21, 2002, inclusive (the "WorldCom Class Period"). Salomon Smith Barney, Inc. and Jack Grubman are named as defendants in both actions.
To discuss these actions, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J.Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The Complaints allege that defendants violated sections 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated thereunder, by the issuance of analyst reports regarding Global Crossing and WorldCom which recommended the purchase of Global Crossing and WorldCom common stock and which set price targets for Global Crossing and WorldCom common stock without any reasonable factual basis. Furthermore, when issuing their Global Crossing and WorldCom reports, defendants failed to disclose significant, material conflicts of interest which they had, in light of their use of Grubman's reputation and his Global Crossing and WorldCom analyst reports, to obtain investment banking business for Salomon. Furthermore, in issuing their Global Crossing and WorldCom reports, in which they were recommending the purchase of Global Crossing and WorldCom stock, defendants failed to disclose material, non-public, adverse information which they possessed about Global Crossing and WorldCom as well as their true opinions about Global Crossing and WorldCom. Defendants also failed to disclose that Grubman, while issuing reports on Global Crossing and WorldCom recommending that investors purchase Global Crossing and WorldCom common stock, had been intimately involved in the management of Global Crossing and WorldCom.
Plaintiffs are represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased Global Crossing during the Global Crossing Class Period described above, you may, no later than July 23, 2002, move the Court to serve as lead plaintiff. If you purchased WorldCom during the WorldCom Class Period described above, you may, no later than July 12, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff in either (or both) actions, however, you must meet certain legal requirements. You can join either action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss these actions, this announcement, or your rights or interests.