Not a Lexis Advance subscriber? Try it out for free.

In re Global Crossing Sec. & ERISA Litig.

United States District Court for the Southern District of New York

November 23, 2004, Decided ; November 24, 2004, Filed

02 MD 1472 (GEL)

Opinion

 [*441] OPINION AND ORDER

GERARD E. LYNCH, District Judge:

Plaintiffs, Settling Defendants 1 [**13]  -- former officers, directors, and employees of Global Crossing Ltd. ("GCL") and Asia Global Crossing Ltd. ("AGC") (collectively "GX") -- and the law firm Simpson Thatcher & Bartlett LLP ("STB") 2 -- have submitted for this Court's approval an approximately $ 325 million partial settlement of litigation stemming from alleged accounting improprieties resulting in the artificial inflation of the price of GCL and AGC stock.  [**12]  After the Court held a fairness hearing, and the parties modified the preliminarily-approved settlement, this partial settlement was approved by order entered on November 10, 2004. This opinion sets forth the reasoning underlying that order. As will be further explicated below, the partial settlement was approved because it is fair, reasonable, and adequate.

BACKGROUND

GCL is a telecommunications company that filed for bankruptcy protection on January 28, 2002. GCL's majority-owned subsidiary, AGC, filed a separate bankruptcy petition on November 17, 2002. In the wake of GCL's (and later AGC's) bankruptcy filing, scores of plaintiffs across the country filed putative class-action and individual lawsuits alleging violations of the federal securities laws, the Employee Retirement Income Security Act of 1974 ("ERISA"), and other laws. On September 6, 2002, the Judicial Panel on Multidistrict Litigation (the "MDL Panel") centralized all pending and future GX-related cases before this Court. In re Global Crossing Ltd. Sec. & ERISA Litig., 223 F. Supp. 2d 1384, 1385-86 (J.P.M.L. 2002).

This litigation consists of more than 50 consolidated securities putative class actions, 15 consolidated putative class actions alleging violations of ERISA, and two other coordinated ERISA putative class actions. The Court has described aspects of this consolidated class action in previous opinions,  [**14]  but repeats here the story of the litigation insofar as it is pertinent to the approval of the settlement.

I. The Securities Action

Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.

225 F.R.D. 436 *; 2004 U.S. Dist. LEXIS 23946 **

IN RE GLOBAL CROSSING SECURITIES AND ERISA LITIGATION

Subsequent History: Costs and fees proceeding at Pusloskie v. Winnick (In re Global Crossing ERISA Litig.), 2004 U.S. Dist. LEXIS 26073 (S.D.N.Y., Dec. 28, 2004)

Prior History: Thompson v. Winnick (In re Global Crossing, Ltd. Sec. Litig.), 221 F.R.D. 394, 2003 U.S. Dist. LEXIS 21744 (S.D.N.Y., 2003)

Disposition: Court approved partial settlement as fair, reasonable and adequate. Court certified classes as defined in Final Judgment and Approval Order, and awarded plaintiffs' counsel their attorneys' fees and expenses.

CORE TERMS

settlement, notice, class member, Settling, class action, plaintiffs', partial settlement, lead counsel, Consolidated, cases, parties, expenses, insurers, proposed settlement, lead plaintiff, plans, documents, coverage, damages, attorney's fees, risks, negotiations, settlement fund, lodestar, approve, Defendants', multiplier, appointed, discovery, employees

Civil Procedure, Class Actions, Class Members, General Overview, Special Proceedings, Certification of Classes, Compromise & Settlement, Judicial Discretion, Notice of Class Action, Voluntary Dismissals, Settlements, Settlement Agreements, Notice of Class Action, Content of Notice, Opt Out Provisions, Prerequisites for Class Action, Business & Corporate Compliance, Overview & Legal Concepts, Related Legal Issues, Securities Regulation, Computer & Internet Law, Civil Actions, Damages, Securities Law, Civil Liability Considerations, Securities Litigation Reform & Standards, Adequacy of Representation, Numerosity, Regulators, Self-Regulating Entities, National Association of Securities Dealers, Commonality, Civil Liability, Fraudulent Interstate Transactions, Capacity of Parties, Representative Capacity, Representatives, Governments, Fiduciaries, Pensions & Benefits Law, ERISA, Civil Litigation, Civil Litigation, Causes of Action, Breach of Fiduciary Duty, Fiduciaries, Typicality, Remedies, Equitable Relief, Declaratory Judgments, Injunctions, Predominance, Superiority, Contracts Law, Types of Contracts, Settlement Agreements, Contracts Law, Contract Interpretation, Fiduciary Responsibilities, Class Attorneys, Named Members, Absent Members, Affirmative Defenses, Fraud & Misrepresentation, Insurance Law, Directors & Officers Liability Insurance, Insured & Insurer Obligations, Indemnification, Settlements, Antitrust & Trade Law, Private Actions, Costs & Attorney Fees, Clayton Act, Judgment Interest, Prejudgment Interest, Commercial Law (UCC), Negotiable Instruments (Article 3), Indorsements, Negotiations & Transfers, Fees, Costs, Legal Ethics, Client Relations, Attorney Fees, Fee Agreements, Costs & Attorney Fees, Lead Counsel, Lead Plaintiff, Attorney Fees & Expenses, Basis of Recovery, American Rule, Reasonable Fees, Class Actions