LOS ANGELES, Jan. 30, 2002 (PRIMEZONE) -- A class action lawsuit was filed by the law firm of Stull, Stull & Brody on January 4, 2002 in the United States District Court for the Southern District of New York, on behalf of those who purchased or otherwise acquired common stock of Globix Corporation ("Globix" or the "Company") (Nasdaq:GBIX) between November 16, 2000 and December 27, 2001, inclusive (the "Class Period").
The complaint charges that defendants, Globix, Marc Bell, Peter Herzig and Brian Reach, violated federal and state securities laws by, among other things, issuing false and misleading statements regarding Globix's financial condition as well as its present and future business prospects.
As alleged in the complaint, on November 16, 2000, in an effort to stabilize the price of Globix stock and to assuage investor concerns over Globix continuing as a going concern, defendants set forth the Company's business plan which stated in no uncertain terms that Globix would be fully funded to fiscal 2003 and thereafter cash flow positive. This sentiment was repeated in Globix's annual report filed on Form 10-K with the Securities and Exchange Commission and numerous times thereafter in Company press releases and conference calls. Despite such assurances, on December 27, 2001, defendants shocked the investing community by announcing that management had been secretly negotiating with its bondholders and preferred stockholders to effectuate a pre-packaged bankruptcy that would result in a near total dilution of the existing common stockholders' interest in the Company.
Plaintiffs seek to recover damages on behalf of class members and are represented by the law firm of Stull, Stull & Brody, who has significant experience and expertise in prosecuting class actions on behalf of investors. If you are a member of the class described above, you may, no later than March 5, 2002, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact: Michael D. Braun of Stull, Stull & Brody toll free at 888-388-4605 or via e-mail at mbraun@secfraud.com or visit the firm's Website at www.secfraud.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca