Citigroup Reaches $75M Settlement on Global Crossing Suit
Citigroup on Wednesday announced it has settled class action litigation brought on behalf of purchasers of Global Crossing securities which was pending in the United States District Court for the Southern District of New York as In re Global Crossing Ltd. Securities Litigation, No. 02 Civ. 910 (GEL).
Under the terms of the settlement, Citigroup will make a payment of $75 million pre-tax, approximately $46 million after tax, to the settlement class, which consists of all investors in publicly traded securities of Global Crossing or Asia Global Crossing during the period from February 1, 1999, through and including December 8, 2003.
The plaintiffs currently contemplate allocating two-thirds of the settlement amount to investors in underwritten public offerings of Global Crossing securities and one third to other investors in Global Crossing securities; the terms of the settlement and the final plan of allocation will be subject to review by the Court. Plaintiffs' attorneys' fees will be determined by the Court and paid out of the settlement amount.
In the settlement agreement, Citigroup specifically denied any violation of law and stated that it was entering into the settlement "solely to eliminate the uncertainties, burden and expense of further protracted litigation." The settlement payment is covered by existing reserves and is part of Citigroup's effort to resolve open litigation issues promptly and fairly whenever possible.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.