– No monetary penalty assessed against company.
– SEC acknowledges company’s cooperation.
– SEC concludes investigation started in February 2002.
FLORHAM PARK, N.J., April 12 – LAWFUEL – The Law News Network — Global Crossing
(Nasdaq: GLBC) announced today that the U.S. Securities and Exchange
Commission (SEC) investigation of the company’s reciprocal purchases and sales
of telecommunications capacity with other carriers and related matters has
been resolved by the SEC’s entry of an administrative order.
“We’re happy to have reached a settlement with the SEC and that we can put
these issues solidly behind us without a finding of fraud or a financial
penalty against the company,” said Global Crossing CEO John Legere. “We look
forward to focusing on Global Crossing’s bright future and building our brand
as a provider of IP services to our customers around the world.”
The order finds that the company did not comply with certain reporting
obligations under the securities laws and requires the company to cease and
desist from committing any future violations. In addition, the order states
that the SEC staff received significant cooperation from the company during
the course of its investigation. No fines or penalties were assessed against
the company, and the order does not include a finding of fraud. The company
neither admitted nor denied the SEC’s findings.
Global Crossing first announced that the SEC was conducting a formal
investigation into allegations regarding its reciprocal transactions in
February 2002.
ABOUT GLOBAL CROSSING
Global Crossing (Nasdaq: GLBC) provides telecommunications solutions over
the world’s first integrated global IP-based network. Its core network
connects more than 300 cities and 30 countries worldwide, and delivers
services to more than 500 major cities, 50 countries and 6 continents around
the globe. The company’s global sales and support model matches the network
footprint and, like the network, delivers a consistent customer experience
worldwide.
Global Crossing IP services are global in scale, linking the world’s
enterprises, governments and carriers with customers, employees and partners
worldwide in a secure environment that is ideally suited for IP-based business
applications, allowing e-commerce to thrive. The company offers a full range
of managed data and voice products including Global Crossing IP VPN Service,
Global Crossing Managed Services and Global Crossing VoIP services, to more
than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators
and ISPs.
Please visit http://www.globalcrossing.com for more information about
Global Crossing.
Statements made in this press release that state the company’s intentions,
beliefs, expectations, or predictions for the future are forward-looking
statements. These statements contain words such as “anticipate,” “estimate,”
“expect,” “project,” “intend,” “plan,” “believe,” “will,” “seek,” or similar
expressions. Such statements are subject to known and unknown risks,
uncertainties and other factors that could cause the actual results to differ
materially from those contemplated by the statements, including the
conditioning of the company’s continued listing on the NASDAQ National Market
on its timely filing with the SEC of all periodic reports for all reporting
periods ending on or prior to September 30, 2005; the company’s history of
substantial operating losses and the fact that, in the near term, funds from
operations will not satisfy cash requirements; legal and contractual
restrictions on the payment of dividends and the inter-company transfer of
funds by the company’s subsidiaries, including restrictions under the senior
secured notes indenture applicable to the company’s primary operating
subsidiary in the UK; the likelihood that the prices the company charges for
its services will continue to decrease; the company’s ability to continue to
connect its network to incumbent carriers’ networks or maintain Internet
peering arrangements on favorable terms; the success of the company’s business
realignment plan and the realization of anticipated cost savings; the
consequences of any inadvertent violation of the company’s Network Security
Agreement with the U.S. Government; the impact of actual and potential
customers’ bankruptcies on the company’s sales prospects and results of
operations; increased competition and pricing pressures resulting from
technology advances and regulatory changes; competitive disadvantages relative
to competitors with superior resources; the impact on the company’s
competitiveness of its technology choices; the company’s dependence on third
parties for many functions; political, legal and other risks due to the
company’s substantial international operations; and other risks referenced
from time to time in the company’s filings with the Securities and Exchange
Commission. The company undertakes no duty to update information contained in
this press release or in other public disclosures at any time.
CONTACT GLOBAL CROSSING:
Press Contact
Becky Yeamans
+ 1 973-937-0155
PR@globalcrossing.com
Analysts/Investors Contact
Laurinda Pang
+ 1 800-836-0342
glbc@globalcrossing.com
Web Site: http://www.globalcrossing.com
