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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (47672)	2/14/2002 12:23:18 PM
From: stockman_scott	Read Replies (3) \| Respond to of 65232

Milberg Weiss Files Class Action Suit Against Officers and Directors of Global Crossing Ltd. SAN DIEGO--(BUSINESS WIRE)--Feb. 6, 2002--Milberg Weiss (http://www.milberg.com/global/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Global Crossing Ltd. (``Global Crossing'') (NYSE:GX - news) publicly traded securities during the period between Jan. 2, 2001 and Oct. 4, 2001 (the ``Class Period''). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from Feb. 4, 2002. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@milberg.com. If you are a member of this class, you can join this class action online at milberg.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges certain of Global Crossing's officers and directors with violations of the Securities Exchange Act of 1934. Due to its recent bankruptcy filing, Global Crossing is not named as a defendant in the action. The complaint alleges that during the Class Period, defendants issued false and misleading statements and press releases concerning Global Crossing's financial statements, their ability to offset declining wholesale demand for bandwidth capacity with higher-margin, customized data services and the Company's ability to generate sufficient cash revenue to service its debt. During the Class Period, before the disclosure of the true facts, the Individual Defendants and certain Global Crossing insiders sold their personally held Global Crossing common stock generating more than $149 million in proceeds and the Company raised $1 billion in an offering of senior notes. However, the full extent of Global Crossing's cash flow crisis, and its failure to compete in the market for customized communications services, began to emerge on Oct. 4, 2001. On that date, the Company issued a string of stunning announcements: cash revenues in the third quarter would be approximately $1.2 billion, $400 million less than the $1.6 billion expected by a consensus of analysts surveyed by Thomson Financial/First Call. The cash revenue shortfall was purportedly the result of a ``sharp falloff'' in wholesale IRU sales to carrier customers. The Company further announced that it expected recurring adjusted EBITDA to be ``significantly less than $100 million'' compared to forecasts of $400 million. Following these announcements, Global Crossing's share priced plunged by 49% to $1.07 per share. Plaintiff seeks to recover damages on behalf of all purchasers of Global Crossing publicly traded securities during the Class Period (the ``Class''). The plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices in New York, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss Web site (http://www.milberg.com) has more information about the firm. ____________________________________ btw, I totally agree that making money is not illegal...If the laws are not broken then folks should be free to make money and be good stewards of it. Yet, we are seeing a lot of evidence that lots of money may have been made illegally in the boom period -- only a small fraction of the responsible parties will most likely be prosecuted and serve prison time. IMO, our Justice Department and SEC need more resources so they can be more effective. I have no worries about the wealthy lawyers that are in charge of large class action law suits against companies like Global Crossing. Law firms like Milberg Weiss are not going bankrupt anytime soon...=)