A class action suit that charged fraud and was brought by shareholders was settled by Winnick and other former company executives. They agreed to pay 325 million, but they didn't have to admit guilt. Winnick who sold 123 million as Global Crossing stock as the company slid toward bankruptcy agreed to pay 55 million under the deal (6).
Shareholders accused Global crossing of using questionable accounting techniques that overstated their revenue. Workers complained that they were barred from selling their shares in their 401(k) when stock prices continued to fall (7 ).