Global Crossing Seeks $1 Billion in Tyco Submarine Suit
HAMILTON, Bermuda, May 23 -- In a complaint alleging wrongful conduct and breach of contract, Global Crossing Ltd. and its subsidiary South American Crossing (Subsea) Ltd., are suing Tyco Submarine Systems Ltd. for over $1 billion. The suit was filed in the US District Court for the Southern District of New York.
The suit accuses Tyco Submarine, a subsidiary of Tyco International Ltd., of failing to fulfill its obligations related to the installation of, among other projects, the South American Crossing fiber-optic cable system. Tyco must also defend itself against claims made by another subsidiary of Global Crossing Ltd. -- Atlantic Crossing Ltd -- which contends that Tyco has come up short on a number of contracts for the development of the AC-1 System.
We deeply regret having to resort to litigation with Tyco, our vendor for a number of our early systems, stated Leo Hindery, Jr., CEO of Global Crossing. 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.
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