Global Crossing 401(k) Plan Participants v Global Crossing Employees' Retirement Savings Plan
Global Crossing 401(k) Participants Receive $80 Million Slice of $325 Million Settlement
The parties have reached a tentative $80 million settlement in several class actions filed against the Global Crossing Employees' Retirement Savings Plan and certain of its officers and directors and former plan participants, who alleged that the defendants violated federal securities laws by committing various accounting improprieties. Persons eligible to participate in the settlement should contact attorneys for the class as soon as possible.
After a year of negotiations, the former officers of Global Crossing have finally settled a host of lawsuits for a total of $325 million. Included in the settlement is $80 million earmarked for 401(k) plan participants who lost their savings when the telecommunications giant filed for bankruptcy. Also included is $1 million more for workers who lost severance packages. Though plan participants won't recover all of their investments in the plan, they will at least receive a portion.
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Without the settlement, Lenette Crumpler would have lost all $86,000 she had invested in her 401K plan. Ms. Crumpler devoted 32 years of her life to the company-- as a single mother with two children, she had to work hard to save for her retirement--losing her pension plan was devastating. Checks are expected to go out before the end of 2004.
The settlement will not be effective until the court grants it final approval. The court has not yet scheduled a hearing on the matter.
