The DOL has issued this press release: “U.S. Secretary of Labor Elaine L. Chao Announces Settlements for Global Crossing Retirement Plans.“
The LA Times reports: “Global Crossing Executives Settle Retirement Suit.”
Also, the Wall Street Journal reports–“Labor Department Settles With Former Global Crossing Executives“:
The Labor Department said Tuesday that Global Crossing founder and former Chairman Gary Winnick will pay $25 million from an irrevocable escrow account and former officers and directors, including Mr. Winnick, former Chief Executive Thomas Casey and former members of the employee benefits committee, will pay an additional $54 million from insurance policies, if the court approves the settlement.“Fiduciaries have a significant responsibility to protect the long-term pension security of their workers,” said Secretary of Labor Elaine Chao. “I hope this lesson gets through to others.”
In March, Global Crossing had settled a related private lawsuit with shareholders, workers and employees for $325 million (read about it here) but, according to the Wall Street Journal report, a clause in the settlement allowed plaintiffs to back out of the agreement if the Department of Labor’s investigation was not resolved to their satisfaction. Back in March, plaintiffs’ lawyers were calling it “the first of [the] leviathan-sized cases to come to a successful close.”