BALA CYNWYD, Pa., May 15, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all purchasers of the common stock of Adelphia Business Solutions, Inc. (Pink Sheets:ABIZQ) ("Adelphia Solutions" or the "Company") between January 6, 2000 and March 27, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges John J. Rigas, Chairman of the Board of Directors, Michael J. Rigas, Vice Chairman, Secretary and Director, Timothy J. Rigas , Vice Chairman, CFO, Treasurer and Director, and James P. Rigas, Vice Chairman, CEO, President and Director with issuing false and misleading statements concerning the Company's business and financial condition. Specifically, the complaint alleges that the Defendants issued materially false and misleading statements regarding the financial condition and results of Adelphia Solutions during the Class Period. The Defendants failed to disclose that because of the deceptive sales practices instituted by or approved of by the Defendants, Adelphia Solutions reported artificially inflated line counts (lines that Adelphia Solutions had sold to customers). The Defendants also committed Adelphia Solutions to pay overhead expenses to Adelphia Communications Corp. (Which was also controlled by the Defendants) without maintaining proper accounting records of these expenses. Additionally, throughout the Class Period, the Defendants failed to disclose in excess of $2 billion of off-balance sheet liabilities for Adelphia Communications Corp. Due to Adelphia Solutions' dependence on the Defendants and Adelphia Communications Corp., the off-balance sheet liabilities should have been disclosed to Adelphia Solutions shareholders during the Class Period. On March 1, 2002, Adelphia Solutions announced that it would not make an interest payment of $15.3 million on certain secured notes of the Company and would be in default. On March 27, 2002, Adelphia Communications Corporation announced its financial results and that it had entered into these off-balance sheet financing arrangements which obligated Adelphia Communications for approximately $2.3 billion in debts, together with Highland Holdings, an entity also controlled by the Defendants. On that same day, March 27, Adelphia Solutions announced that it had filed for Chapter 11 Bankruptcy protection.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which has significant experience and expertise prosecuting class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than July 9, 2002, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca