NEW YORK, May 7, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of New York, on behalf of all persons or entities who purchased WorldCom, Inc. ("WorldCom" or the "Company") common stock (Nasdaq:WCOM) between January 3, 2000 and April 29, 2002, both dates inclusive (the "Class Period"). WorldCom, Bernard J. Ebbers, James C. Allen, Max E. Bobbitt, Francesco Galesi and its auditors, Arthur Andersen, LLP are named as defendants in the action.
The Complaint alleges that defendants violated Section 10(b) and 20(a) of the Securities and Exchange Act of 1934 by issuing a series of materially false and misleading statements concerning its business and financial condition. Particularly, Defendants misrepresented WorldCom's earnings in its public filings with the Securities and Exchange Commission and elsewhere as a result of failing to record write-downs of goodwill and other intangible assets associated with WorldCom's acquisition of numerous telecommunications companies at premium prices.
The complaint further alleges that Defendants affirmatively misstated the value of goodwill and other intangible assets associated with WorldCom's acquisition of numerous telecommunications companies at premium prices and carrying such assets on WorldCom's balance sheet at the cost of acquiring them long after it had become apparent that WorldCom had overpaid to acquire such assets. Additionally, Defendants failed to disclose that WorldCom's goodwill and other intangible assets associated with WorldCom's acquisitions of numerous telecommunications companies at premium prices were being carried at unrealistically and misleadingly high values on WorldCom's balance sheet.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased WorldCom common stock during the Class Period described above, you may, no later than July 1, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.