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Simpson to Pay $19.5 Million in Global Crossing Settlement Simpson Thacher & Bartlett has agreed to contribute $19.5 million to an approximately $325 million settlement of shareholder class action claims arising from alleged accounting fraud at telecommunications carrier Global Crossing Ltd. The settlement agreement received preliminary approval Friday evening by Southern District Judge Gerard E. Lynch. The agreement includes a $55 million contribution by former Global Crossing Chief Executive Officer Gary Winnick, with the rest to be paid by insurers for Global Crossing, which emerged from bankruptcy last year. Jay Eisenhofer of Wilmington’s Grant & Eisenhofer, counsel to the lead plaintiffs, hailed the settlement as one of the largest ever from a recently insolvent company and said Mr. Winnick’s contribution was one of the largest ever by an individual. Global Crossing filed for bankruptcy in January 2002 amid allegations by a former executive that the company had improperly inflated earnings and cash flow. The executive, Roy Olofson, detailed his allegations in an August 2001 letter to the firm’s general counsel, and outside counsel Simpson Thacher was tapped to conduct an internal investigation headed by partner Rhett Brandon. Following the bankruptcy filing, another internal investigation conducted by Coudert Brothers castigated Simpson Thacher for fumbling the investigation into Mr. Olofson’s allegations. Simpson Thacher, which slammed the report as inaccurate and accused Coudert of “professional jealousy,” then retained Robert Fiske of Davis Polk & Wardwell to represent it in settlement talks. The firm was never a defendant in the class action but Mr. Eisenhofer said he had an agreement with the firm not to toll the statute of limitations, preserving his right to sue. Neither Mr. Fiske nor Simpson Thacher Chairman Richard I. Beattie could be reached for comment. Ralph C. Ferrara of Debevoise & Plimpton, who represented Global Crossing, also could not be reached for comment. The class action continues against numerous banks and other entities. � Anthony Lin Fried Frank Hires European Operations Head Nearly a year after the collapse of merger talks between New York’s Fried, Frank, Harris, Shriver & Jacobson and London’s Ashurst, Fried Frank has hired Ashurst’s former managing partner to head its European operations. Justin Spendlove, a leveraged finance specialist, was managing partner of Ashurst, formerly called Ashurst Morris Crisp, from October 2000 until January. For most of his tenure, he was involved in merger discussions with Fried Frank. Such a combination would have been the first trans-Atlantic merger of law firms of similar size, profitability and practice strength. but the two firms announced last May that talks had ended without an agreement. � Anthony Lin Loeb & Loeb Names New Co-Chairman Loeb & Loeb has named New York real estate partner Michael D. Beck co-chairman. Previously managing partner of the firm’s New York office, he will replace Jerome L. Levine, who will return to his practice. Los Angeles-based partner John T. Frankenheimer will remain the firm’s other co-chairman. Loeb & Loeb, most well known for its work in the media and entertainment industries, has about 180 lawyers, mostly divided between New York and Los Angeles, with smaller offices in Chicago and Nashville. � Anthony Lin Review Cites Improvement at Brooklyn Prison The U.S. Bureau of Prisons has moved to address problems at a federal prison in Brooklyn where guards abused dozens of people detained shortly after the Sept. 11, 2001, attacks, according to a Justice Department review. The review, released Friday, said the bureau had taken “reasonable and responsible steps” to address concerns raised by an earlier investigation into allegations that many of the 84 detainees were mistreated at the Metropolitan Detention Center in Brooklyn. But the review also urged further action in several areas, including creating a special cadre of guards for high-security inmates, a tighter policy on videotaping inmates’ movements and on videotaping of strip searches. � Associated Press

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