Global Crossing Settlement

Goldman Sachs (GS Quote) leads a group of bankers that has agreed to pay $99 million to settle another round of class-action claims in the 2002 failure of telco Global Crossing (GLBC Quote).

Plaintiffs in the case have now netted $444 million in settlements.

The latest contributions come from the investment banks that served as underwriters and financial advisers to the now-reorganized telco. The payouts include $42.1 million from Goldman, $19.2 million from Merrill Lynch (MER Quote), $17.3 million from CIBC (CM Quote), $3.8 million from JP Morgan (JPM Quote), $6.7 million from Credit Suisse (CSR Quote), $2.9 million Morgan Stanley (MS Quote) and other contributions from Bear Stearns (BSA Quote), Deutsche Bank (DB Quote), Lehman Brothers (LEH Quote) and ABN Amro.

Plaintiffs had already bagged $245 million worth of settlements from officers and board members of Global Crossing, including $30 million from former Chairman Gary Winnick. Citigroup (C Quote) paid $75 million, accounting shop Arthur Andersen paid $25 million and law firm Simpson Thacher & Bartlett paid $19.5 million.

Global Crossing filed for bankruptcy protection in January 2002 amid a swirl of accounting questions and the dramatic decline of the telecom industry. The company emerged from bankruptcy in late 2003 with the financial support of Singapore Technologies Telemedia.

Last year, the Securities and Exchange Commission issued cease-and-desist orders against the Florham Park, N.J., company and former CEO Thomas Casey, former Chief Accounting Officer Joseph Perrone and former Chief Financial Officer Dan Cohrs. The three each agreed to pay $100,000 fines.

Neither the company nor the executives admitted any wrongdoing, and the company cooperated with the SEC in the investigation.

Shares fell 40 cents Wednesday to $15.06.