Milberg Weiss Announces The Filing Of A Class Action Suit Against Global Crossing Limited and Certain Of Its Officers and Directors on Behalf of Investors

Business Wire, May 3, 2004

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--May 3, 2004

The law firm of Milberg Weiss Bershad & Schulman LLP announces that a class action lawsuit was filed on May 3, 2004, on behalf of purchasers of the securities of Global Crossing Limited ("Global Crossing" or the "Company") (Nasdaq:GLBCE) between December 24, 2003 and April 26, 2004, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' Web site at: http://www.milbergweiss.com/caseinfo/caseinfodetail.aspx?caseid=1007

The action is pending in the United States District Court for District of New Jersey against defendants Global Crossing, John Legere (CEO) and Dan O'Brien (CFO). According to the complaint, defendants violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 by issuing a series of material misrepresentations to the market during the Class Period.

The complaint alleges that throughout the Class Period, Global Crossing reported positive results in publicly disseminated press releases and SEC filings. Defendants attributed these purportedly positive results to the Company's emergence from bankruptcy protection on December 9, 2003, and decreases in fees the Company paid to other carriers for use of their lines. Such fees are referred to in the industry as "cost of access." In addition, the complaint charges that defendants represented that they actively monitored the Company's system of estimating its costs of access, and further, that these estimates were adjusted as invoices were received from access providers.

The complaint alleges defendants knew or recklessly disregarded that: (i) Global Crossing lacked adequate internal controls, (ii) Global Crossing's costs of access were materially understated in Global Crossing's financial statements, and, as a result, (iii) Global Crossing's reported earnings were at all relevant times, artificially inflated.

On April 27, 2004, minutes after the market opened, defendants disclosed that Global Crossing would restate its previously issued financial statements as far back as fiscal 2002 because defendants had understated the accrued cost of access liability by $50 million to $80 million. The Company stated that that the understatement of its cost of access liability was due to "incorrect estimates of cost of access expenses and the failure to reconcile these expenses to vendor invoices," that there were material weaknesses in its internal controls, and that investors should disregard the Company's financial statements for fiscal 2002 and 2003, including interim periods. The Company further stated that investors should disregard defendants' previous guidance with respect to Global Crossing's 2004 results. In reaction to this news, the price of Global Crossing common stock fell $5.00, or 27.4%, from its previous day's closing price of $18.20 per share, to close on April 27, 2004 at $13.20.

If you bought the securities of Global Crossing between December 24, 2003 and April 26, 2004, inclusive, and sustained damages, you may, no later than June 29, 2004, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.

Milberg Weiss Bershad & Schulman LLP (http://www.milbergweiss.com) is a 100-lawyer firm with offices in New York City, Los Angeles, Boca Raton, Seattle, and Washington, D.C., and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss Web site for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:

    Steven G. Schulman
    Peter E. Seidman
    Andrei V. Rado
    One Pennsylvania Plaza, 49th fl.
    New York, NY, 10119-0165
    Phone number: (800) 320-5081
    E-mail: globalcrossing@milbergweiss.com
    Web site: http://www.milbergweiss.com