The opinion of the court was delivered by: GERARD E. LYNCH, District Judge
By order dated November 13, 2003, this Court denied plaintiff's
motion to remand or abstain in the above-captioned case. Accordingly,
pursuant to paragraphs 17 and 41 of this Court's Order in In re
Global Crossing, Ltd. Securities and ERISA Litigation, Dkt. No. 02
MD 1472, dated December 13, 2002 (the "Global Crossing Consolidation
Order"), the above-captioned case is hereby consolidated for all purposes
with In re Global Crossing, Ltd. Securities Litigation, Dkt. No.
02 civ. 910, pursuant to Rule 42(a) of the Federal Rules of Civil
Procedure. All provisions of the Global Crossing Consolidation Order are
hereafter applicable to this action. The parties are directed to file any
objections to this consolidation or to the application of any
provision(s) of the Global Crossing Consolidation Order, a copy of which
is attached hereto, no later than April 30, 2004. In accordance with
paragraph 33 of the Global Crossing Consolidation Order, the complaint in
this action shall be deemed withdrawn and shall be dismissed unless the
plaintiffs, no later than April 30, 2003, shows cause why the complaint
should not be dismissed.
The Clerk of the Court is respectfully directed to file and docket this
Order under both the above docket number and In re Global Crossing,
Ltd. Securities Litigation, Dkt. No. 02 civ. 910.
Approximately seventy cases growing out of the decline in value of
Global Crossing, Ltd. ("GC") have been filed in this Court or transferred
here by the Joint Panel on Multidistrict Litigation for consolidated or
coordinated proceedings. The majority of these cases stem from class
action complaints on behalf of purchasers of GC securities; essentially
all of these complaints specifically allege that GC overstated revenues
in its SEC filings and other public statements, primarily by means of
fraudulent accounting practices in connection with reciprocal leases of
cable capacity. Another set of class action complaints, brought on behalf
of employee-participants in GC's retirement savings plan, charge that
various defendants violated their duties as fiduciaries under the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), by
failing to monitor the plan's investments in company stock, and by
failing to disclose to plan participants and beneficiaries the risks of
investing in GC securities.
Numerous motions for consolidation and for appointment of lead
plaintiffs, and for other relief relating to the proper organization of
these cases in order to resolve the various overlapping claims and common
legal and factual issues, have been submitted, and the papers relating to
these various motions have been considered by the Court. Conferences
involving all counsel were held on November 22, 2002, and December 10,
2002, to hear arguments regarding these various applications, and to
assist the Court in understanding the views of the various parties
concerning the fairest and most efficient methods of resolving these
disputes. On the basis of the oral and written submissions of the
parties, and after extended reflection by the Court, it is hereby
ORDERED, for the reasons stated on the record in open court on December
10, 2002, that:
I. Proposed Consolidation of All Cases
1. The motion of certain defendants to consolidate all of the actions
relating to Global Crossing for pretrial purposes is denied.
discovery; (e) speak on behalf of plaintiffs at any
pretrial conference; (f) employ and consult with experts;
(g) conduct settlement negotiations with defense counsel on
behalf of plaintiffs; (h) call meetings of plaintiffs' counsel;
ft) accept service on behalf of all plaintiffs; (j)
distribute to all plaintiffs' counsel copies of all notices, orders, and
decisions of the Court, including this order: (k)
maintain an up-to-date list of counsel available to all plaintiffs'
counsel on request; and (I) keep a complete file of all papers
and discovery materials filed or generated in the Consolidated ERISA
Action which shall be available to all plaintiffs' counsel at reasonable
C. Scheduling of Pleadings
8. Plaintiffs shall file a consolidated amended complaint for the
Consolidated ERISA Action no later than January 24, 2003.
9. Defendants shall respond to the consolidated amended complaint, by
motion or answer, no later than March 10, 2003.
10. If any defendant moves to dismiss the consolidated amended
complaint, plaintiffs shall respond to such motion no later than April
11. Defendants shall reply to plaintiffs' response(s) no later than 30
days after filing of the response.
12. Pursuant to the Court's Individual Practice Rules, courtesy copies
of motions or responses need not be provided to chambers at the time of
filing. When the reply or replies are served and filed, defendants shall
supply two courtesy copies of all motion papers to chambers.
13. Pending filing and service of the consolidated amended complaint,
defendants shall have no obligation to move, answer, or otherwise respond
to any of the complaints in the actions consolidated herein or any
actions subsequently consolidated with them.
14. The complaints previously filed in any of the GC ERISA Actions
already before this Court shall be deemed withdrawn, and shall be
dismissed, two weeks after the filing of the consolidated amended
complaint, unless the plaintiff(s) filing said complaints, no later than
February 3, 2003 (or, if the date for filing the consolidated amended
complaint is extended by further Order of this Court, within ten days
after the adjourned filing date), ft) shows cause for why the
complaint should not ...