Excerpt: Global Crossing slides on lawsuit news
- Global Crossing alleges Tyco stole trade secrets to develop a rival business building and operating undersea fiber-optic telecommunication networks. The lawsuit, filed in the United States District Court for the Southern District of New York, is seeking damages in excess of $1 billion.
- The complaint alleges “tortious conduct and breach of contractual obligations” related to Tyco’s agreements to install the South American Crossing fiber-optic cable system.
- Bloomberg also reported Tyco claims the announcement is part of an ongoing effort by Global Crossing to avoid payment of outstanding balances due as a result of work performed by TSSL.
- “We deeply regret having to resort to litigation with Tyco, our vendor for a number of our early systems,” said of Global Crossing CEO Leo Hindery, Jr. in a company statement. “But after spending nearly a year seeking unsuccessfully to resolve our differences, we have no alternative to legal action in order to enforce our rights and protect our shareholders.”