Global Crossing Executives Settle Retirement Suit

The U.S. Labor Department approved a $79-million settlement of a lawsuit brought by employees of Global Crossing Ltd. against former company executives including ex-Chairman Gary Winnick over management of its retirement plan.

The proposed class-action settlement needs court approval, the Labor Department said Tuesday.

Global Crossing’s 401(k) plan lost millions of dollars because of its “extensive” holdings of the company’s stock, which was wiped out by its January 2002 bankruptcy filing, the Labor Department said. Global Crossing is the owner of a worldwide fiber-optic network.

The settlement also covers Thomas J. Casey, Global Crossing’s former chief executive, and three men who were on the company’s employee benefits committee: Dan J. Cohrs, Joseph Perrone and John Comparin.

The $79 million includes $25 million that Winnick placed in an escrow account and $54 million from the executives’ insurance policies, the Labor Department said.

Shares of Bermuda-based Global Crossing rose 12 cents to $12.59 on Nasdaq on Tuesday. Global Crossing moved its executive offices from Beverly Hills to Florham Park, N.J.