BALA CYNWYD, Pa., Jan. 11, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Eastern District of Virginia (01-1880-A) claims that XO Communications ("XO")(Nasdaq:XOXO) misled shareholders about its financial condition as well as its present and future business operations.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought XO securities between April 4, 2001 and November 29, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of XO Communications and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that the Virginia-based XO Communications misled the investing public concerning the Company's ability to finance its business operations until it becomes cash-flow positive. Throughout the Class Period, defendants stated that XO had sufficient cash to survive at least into mid-2003 without the need for further financing.
On November 29, 2001, defendants announced a transaction where the XO's equity was destroyed in exchange for a cash infusion of $800 million. Trading in the Company's stock was immediately halted.
If you purchased XO securities during the period April 4, 2001 and November 29, 2001, you may be a member of the class and have until February 3, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca