News Summary
Gary Winnick, the former chairman of Global Crossing, Ltd., must face a lawsuit accusing him of defaming
a company finance executive who complained about the fiber-optic network operator's accounting, a judge ruled.
U.S. District Judge Gerard Lynch in Manhattan refused to dismiss a claim that Winnick defamed Roy
Olofson, former vice president of finance. Olofson, who is represented by Paul Murphy of Murphy, Rosen &
Cohen, complained in 2001 that the company had improperly accounted for phone-service swaps. He was
later fired.
Global Crossing last month agreed to pay $325 million to resolve securities-fraud and pension claims
by investors and employees over the company's collapse and accounting practices. The accord represents
only a fraction of the $40 billion in stock value wiped out by the company's January 2002 bankruptcy
filing, the second largest in the telecommunications industry after WorldComm Inc.
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