Law Firms File Suits Against Global Crossing

Several law firms filed suits this week against communications company Global Crossing Ltd., its executives and directors, Wall Street underwriter Morgan Stanley Dean Witter and others, accusing them of violating securities laws during Global Crossing’s 1998 initial stock offering and the 1999 stock purchase of Frontier Corp.

The lawsuits were filed in U.S. District Court for the Southern District of New York and are similar to those being filed against other companies that made stock offerings in recent years.

Two of the complaints allege that Global Crossing shareholders were defrauded during the initial public offering because they did not know that “some of the underwriters in the offering, including the lead underwriters, had solicited and received excessive and undisclosed commissions from certain investors.”

Another pair of complaints make similar allegations relating to Global Crossing’s stock purchase of phone company Frontier.

Global Crossing said it believes that it acted “in accordance with all applicable laws” and will vigorously defend itself.