A shareholder of Global Crossing (NYSE:GX) has filed a securities class action lawsuit in the United States District Court for the Central District of California, Case No. CV-02-1074 R (PJWx), on behalf of all persons who acquired Global Crossing common stock between January 2, 2001 and October 4, 2001, inclusive.
The complaint charges that certain officers and directors of Global Crossing violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5) by, among other things: violating Generally Accepted Accounting Principles to artificially inflate the Company’s revenues and earnings and issuing false and misleading statements releases regarding the Company’s past financial performance, the global market for bandwidth on its fiber optic network and the Company’s anticipated future revenues.
According to the complaint, 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 October 4, 2001 with a string of stunning announcements. As a result of these announcements, the price of Global Crossing stock plunged almost 50%.

Update

This case has settled. For more information and to download settlement notice and proof of claim, please go to www.globalcrossinglitigation.com.