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, 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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