TyCom and Global Crossing announced Tuesday that the companies have settled all legal proceedings against each another. The legal dispute, which included arbitration and appearances in Federal court, concerned the agreements between the two companies to build fiber-optic cable routes across the Atlantic and in South America.
TyCom, a subsidiary of Tyco International, builds undersea cable systems. Telecommunications carrier Global Crossing filed a lawsuit against TyCom in May last year seeking more than $1 billion in damages for breech of contract related to the Atlantic and South American routes. The two companies announced in September 2000 a settlement of one of the disputes concerning the Atlantic cable system that required Global Crossing to pay TyCom $19 million to terminate a maintenance contract. The two also kept working together on building other cable systems throughout the legal battles, including an August 2000 deal for a $100 million cable system in the Pacific for Asia Global Crossing, a company 59 percent owned by Global Crossing along with stakes by Softbank and Microsoft.