NEW YORK, April 17, 2002 (PRIMEZONE) -- Gemstar-TV Guide International, Inc. (Nasdaq:GMST) and Adelphia Communications Corporation (Nasdaq:ADLAC) are charged with securities fraud by Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com), which has filed the following class actions lawsuits on behalf of purchasers of the following securities:
Gemstar-TV Guide International, Inc. (Nasdaq:GMST):
According to the Complaint, Gemstar improperly recognized $107.6 million in licensing revenue from cable TV equipment maker Scientific-Atlanta, Inc. since 1999, although Scientific-Atlanta, Inc. stopped making payments to Gemstar beginning in 1999. Additionally, Gemstar improperly booked $20 million in revenue from advertising space it purportedly "sold" on its interactive program guides to a company called Fantasy Sports, although the transaction was actually a "barter arrangement" in which Gemstar received intellectual patents, not cash, from Fantasy Sports. As a result of Gemstar's misrepresentations and omissions about its financial results, the price of Gemstar's shares traded at artificially inflated prices. On April 1, 2002, when Gemstar filed its 10-K for the year ended December 31, 2001, it belatedly provided some disclosures of its improper revenue recognition practices. As a result of this disclosure, the price of Gemstar's shares fell as much as 37%, or $5.35, to $9.01. Shareholders who purchased Gemstar common stock between August 11, 1999 and April 1, 2002 ("the Class Period") have until June 3, 2002 to ask the Court to appoint them as one of the lead plaintiffs for the Class.
Adelphia Communications Corporation (Nasdaq:ADLAC):
According to the Complaint, Adelphia manipulated its financial statements and misrepresented its earnings and financial results, thereby artificially inflating Adelphia's stock price by improper accounting practices. On March 27, 2002, Adelphia disclosed that in conjunction with its fiscal 2001 financial results, the Company was liable for at least $2.3 billion in debt related to the co-borrowing guarantees entered into with Highland Holdings, a third party controlled by Adelphia. Following this disclosure, the price of Adelphia common stock fell to $16.70 per share, a loss of approximately 20% of the value of the stock from the previous trading day. During the Class Period, Adelphia's shares traded as high as $45 per share. Shareholders who purchased Adelphia common stock between April 2, 2001 and March 26, 2002 ("the Class Period") have until June 3, 2002 to ask the Court to appoint them as one of the lead plaintiffs for the Class.
If you purchased the common stock of any of the above companies during their respective Class Period and wish to discuss these actions or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca