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CWA Presses Action Against Global Crossing
CWA Presses Action Against Global Crossing
CWA's motion to intervene in the bankruptcy proceeding of Global Crossing Inc. was granted by a federal bankruptcy judge in New York. CWA has joined with Citizens Communications in pressing for a full transfer of the pension plan assets from Global Crossing to Citizens, as required under the terms of the sale to Citizens that was finalized in June 2001. The transfer has been held up since Global Crossing filed for federal bankruptcy protection in January 2002.
CWA also has filed a class action lawsuit against the administrators of the 401(k) savings plan covering about 1,000 CWA members, former employees of Frontier Communications and Global Crossing who now work for Citizens in Rochester, N.Y., Minnesota and Iowa. The lawsuit charges that the executives and board of directors of Global Crossing, as administrators of the plan, had the responsibility to act on their knowledge and alert plan participants that continued investment in Global Crossing stock was no longer a prudent investment. Two-thirds of the plan assets were invested in Global Crossing stock.
In the September 1999 sale of Frontier to Global Crossing, all stock holdings of members and retirees were converted to Global Crossing stock and all company contributions to the 401(k) plan were made solely in Global Crossing stock. At the time the sale to Citizens was completed in 2001, Global Crossing stock was trading at about $8 a share.
CWA's motion to intervene in the bankruptcy proceeding of Global Crossing Inc. was granted by a federal bankruptcy judge in New York. CWA has joined with Citizens Communications in pressing for a full transfer of the pension plan assets from Global Crossing to Citizens, as required under the terms of the sale to Citizens that was finalized in June 2001. The transfer has been held up since Global Crossing filed for federal bankruptcy protection in January 2002.
CWA also has filed a class action lawsuit against the administrators of the 401(k) savings plan covering about 1,000 CWA members, former employees of Frontier Communications and Global Crossing who now work for Citizens in Rochester, N.Y., Minnesota and Iowa. The lawsuit charges that the executives and board of directors of Global Crossing, as administrators of the plan, had the responsibility to act on their knowledge and alert plan participants that continued investment in Global Crossing stock was no longer a prudent investment. Two-thirds of the plan assets were invested in Global Crossing stock.
In the September 1999 sale of Frontier to Global Crossing, all stock holdings of members and retirees were converted to Global Crossing stock and all company contributions to the 401(k) plan were made solely in Global Crossing stock. At the time the sale to Citizens was completed in 2001, Global Crossing stock was trading at about $8 a share.