Global Crossing: Company stock class action breaks new ground

Served as co-lead counsel in this novel, complex action alleging that directors and officers of Global Crossing, Ltd. (Global Crossing), a former high-flier of the late 1990’s tech stock boom, breached their fiduciary duties under ERISA to certain company-provided 401(k) plans and their participants.

These breaches arose from the plans’ alleged imprudent investment in Global Crossing stock during a time when defendants knew, or should have known, that the company was facing imminent bankruptcy. A settlement of plaintiffs’ claims in November 2004 restored $79 million to the plans and their participants—the largest recovery in a company stock ERISA class action at that time.