Winnick Is Sued In Dispute Over Stake in Network

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Global Crossing Ltd. Chairman Gary Winnick is being sued by an anonymous Los Angeles venture capitalist who is seeking a stake in the company, which owns a worldwide telephone and data network.

In a lawsuit filed Aug. 7 in Los Angeles Superior Court, the venture capitalist, identified only as “John Doe,” said he was promised a 15 percent stake in ventures formed by Pacific Capital Partners, a Winnick-led group the plaintiff joined in 1993.

The plaintiff said he was a partner in a project known as Telecommunications Development Corp., which later became Global Crossing. He is seeking a 15 percent share of the Global Crossing stake owned by the Pacific Capital partnership.

Marshall Grossman, an attorney for Winnick and Beverly Hills-based Pacific Capital Group Inc., said in a statement that he believes the suit “will be found to be without merit.” His clients intend to take legal action against the plaintiff, he said.

“The fact that this lawsuit is brought by an individual who will only identify himself as John Doe and is based on an alleged 1993 oral agreement speaks for itself,” he said. “We are outraged at the filing of a lawsuit like this and are confident that Mr. Doe’s claims will be summarily dismissed by the court.”

Global Crossing spokesman Thomas Goff declined to comment, saying he hadn’t seen the suit.

The suit names as defendants Winnick and Pacific Capital Group, which was formed in 1985 by Winnick. It also names as defendants unnamed people who worked with Pacific Capital Group and Pacific Capital Partners, and those involved in the initial public offering of Hamilton, Bermuda-based Global Crossing.

Global Crossing shares fell $1.38 to $30.50 on Aug. 8.

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