Judge Backs Settlement in Global Crossing Suit

A U.S. District Court judge in New York gave preliminary approval to a $99-million settlement of a securities fraud lawsuit by shareholders of Global Crossing Ltd. against Goldman Sachs Group Inc. and 25 other investment banks.

“The banks were targeted for their role as financial advisors to Global Crossing and its affiliate Asia Global Crossing in issuing securities in 2000 and 2001,” Grant & Eisenhofer, a law firm representing the shareholders, said in a statement.

Shareholders claimed that Global Crossing, a telecommunications provider that emerged from bankruptcy proceedings in December 2003, misstated its finances. Banks agreeing to settle the suit include Merrill Lynch & Co., Canadian Imperial Bank of Commerce, Bear Stearns Cos. and JPMorgan Chase & Co.