updated 12/15/2003 5:10:54 PM ET 2003-12-15T22:10:54

Investment bank J.P. Morgan Chase & Co. has sued 23 former officers and directors of Global Crossing Ltd. for $1.7 billion, accusing them of hiding important financial information while running the fiber-optic network.

J.P. Morgan contends founder Gary Winnick and others "devised, directed and controlled" a massive scheme to disguise Global Crossing's poor financial health so the company could get $2.25 billion in loans, according to the lawsuit filed in New York state court.

J.P. Morgan was one of several creditors and bondholders that put a total of $12.4 billion into Global Crossing before the carrier collapsed nearly two years ago and filed for bankruptcy protection.

Global Crossing is not a defendant in the lawsuit, filed Oct. 27. The company, based in Bermuda, disclosed the suit in a Securities and Exchange Commission filing Monday.

An attorney for Winnick did not immediately return a call seeking comment.

Global Crossing emerged from bankruptcy Tuesday. It has moved its headquarters to Florham Park, New Jersey, and slashed long-term debt to just $200 million from $11 billion.

Copyright 2003 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com