LITTLE ROCK, Ark., May 25, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Winstar Communications, Inc. ("Winstar" or the "Company") (Nasdaq:WCII) (Nasdaq:WCIEQ) common stock during the period between August 2, 2000 and April 2, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's Website at http://www.classlawyer.com/pr/winstar.pdf.
The complaint charges Winstar and certain of its officers and directors with issuing false and misleading statements concerning the Company's business and financial condition. The complaint alleges that the Company's announced strong financial results were actually the result of improper accounting practices in which Winstar capitalized numerous capital expenditures as assets instead of expenses and overstate its revenues by improperly reporting uncollectible receivables as revenues. On April 2, 2001, upon its announcement that it would be delaying the filing of its From 10-K because it was involved in material transactions that precluded it from making a timely filing, Winstar's stock price dropped approximately 40%, from a prior close of $2.16 per share to $0.875 per share. On April 5, 2001, the Company announced that it was halting expansion plans and would be laying off approximately half of its workforce and the next day, April 6, 2001, the stock price dropped even lower, closing at $0.40 per share.
If you bought the common stock of Winstar between August 2, 2000 and April 2, 2001, inclusive, you may, no later than June 11, 2001 request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Cauley Geller Bowman & Coates, LLP, or other counsel of your choice, to serve as your counsel in this action. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Client Relations Department: Jackie Addison, Sue Null or Charlie Gastineau P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca