Global Crossing Settlement:
WOKR-TV 1: “Global Crossing Settlement Helps Some Local Pensions“:
After a year of negotiations, former officers of Global Crossing have finally settled a class action lawsuit. . . To break down the $325 million settlement: $240 million will be paid to shareholders; $79 million will go to workers who lost their 401K plans; $1 million will go to those who lost severance packages.
New York Times: “Global Crossing Settles for $325 Million“:
Ralph Ferrara, a lawyer at Debevoise & Plimpton in Washington, who represented Global Crossing’s directors and officers, said he thought the recovery for the employees of Global Crossing was the largest ever under the Employee Retirement Income Security Act. And he said the securities case was a landmark result “because it’s the first of these leviathan-sized cases to come to a successful close and will serve as a benchmark for all of the others of how to do it.”
Blogger Lyle Roberts at the 10b-5daily.com: “Global Crossing Settles.”
The Wall Street Journal (subscription required): “Global Crossing SEC Deal Is Expected“:
A $325 million securities class-action settlement for former shareholders and employees of Global Crossing Ltd. helps pave the way for a settlement deal between the telecom company and the Securities and Exchange Commission over alleged accounting fraud. . . Under the settlement announced Friday, shareholders and employees who lost billions in the troubled telecommunications company will receive $325 million from Global Crossing’s former officers, directors and outside lawyers. Company founder and former Chairman Gary Winnick will pay a total of $55 million, while insurance companies for former officers and directors agreed to pay roughly $280 million. The company’s former law firm . . . which was not a defendant and did not admit to any wrongdoing, agreed to pay $19.5 million.
U.S. Supreme Court Hears Arguments in HMO Case:
The U.S. Supreme Court is hearing arguments today in the combined cases of Aetna Health Inc v. Davila, No. 02-1845, Cigna Healthcare of Texas v. Calad, No. 03-83. You can access the following articles on the case:
- USAToday.com: “Patients’ fight for right to sue insurers goes to top court”
- The Insurance Journal: “Patients’ Right-to-Sue Case Reaches Supreme Court”
- Washington Times: “Court weighs HMO liability”
The Associated Press via Findlaw.com has this article: “HMO Horror Story’ Comes to Supreme Court“:
Insurers, backed by the Chamber of Commerce and others, argued in court filings that ERISA has its own procedures for reviewing or appealing coverage decisions, and that sidestepping the federal law would lead to more lawsuits and drive up health care costs. On the other side, trial lawyers, medical organizations and numerous states argued that states should have the right to hold HMOs accountable if treatment decisions shortchange patients.
Other news:
Press Release: “Travelers Bond Announces New ERISA HelpLine for Fiduciary Liability Insureds“:
Travelers Bond, a division of Travelers Property Casualty Corp. (NYSE: TAP.A and TAP.B), announces the debut of its ERISA Help Line . . . The new ERISA HelpLine is staffed by attorneys with a national ERISA practice from the law offices of Alston & Bird, a firm based in Atlanta, Ga. Companies that purchase Fiduciary Liability PLUS+(R), or fiduciary coverage under one of Travelers Bond’s executive liability package policies, can access the HelpLine via a toll-free number and receive up to one hour of consultation with an ERISA attorney at no charge.
The Wall Street Journal (subscription required): “Expected Cost Savings From Medicare Act May Top $11.8 Billion.”
A benefit to earnings is coming. So far, 18 large companies have estimated in their 2003 reports that the recently passed Medicare Act would collectively save them more than $11.8 billion in benefit costs over time, according to a report by Bear Stearns Monday. The bill entitles employers who provide certain drug benefits to receive subsidies beginning in 2006. The projected savings, under a proposed accounting guideline, will in most cases flow to the bottom line gradually.
The Wall Street Journal (subscription required): “Next on the Outsourcing List: Job Shift to Cheaper Countries Could Threaten More Careers: Analysts, Architects, Attorneys.”