Accused of filling false and misleading statements to inflate the value of its company stock, Global Crossing will be prosecuted by the Ohio Attorney General’s office, which alleges the Ohio Public Employees Retirement System and the State Teachers Retirement System lost a combined $116 million due to the company’s illegitimate practices.
“Our office has been working diligently this past year to obtain lead plaintiff status to ensure Ohio is able to control its own destiny in this lawsuit,” Ohio Attorney General Betty Montgomery said in a press release.
Ohio had previously attempted to gain lead plaintiff status in suits against Enron Corp. and WorldCom Inc, which went to California and New York , respectively. The state pulled out of the national class-action suits when status was not granted and is now pursuing legal action against these companies on its own (see Ohio Will Stay Close to Home With Enron, WorldCom Claims ).
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