Ex-Global Crossing execs settle suit

Global Crossing founder and former chairman Gary Winnick agreed last week to pay $55 million as part of a $325 million settlement between Global Crossing investors and some of the company’s former executives. Winnick, who sold $123 million worth of company stock as the carrier headed toward bankruptcy in January 2002, did not admit to any wrongdoing. Winnick’s $55 million payment includes $25 million that he previously offered to replace the retirement savings of Global Crossing employees. The plaintiffs in the case, led by the Public Employees Retirement System of Ohio and the State Teachers' Retirement System of Ohio, accused Winnick and others of using financial reports and public comments to mislead them about the financial health of the company. Claims against Global Crossing’s auditor, Arthur Anderson, and some underwriters of Global Crossing securities, are still ongoing. And the Securities and Exchange Commission is still investigating the actions of Winnick and other executives surrounding the company’s bankruptcy, one of the largest in American history.