LITTLE ROCK, Ark., June 16, 2002 (PRIMEZONE) -- The Emerson Firm, a securities class action trial law firm, announced today that a class action has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of Adelphia Business Solutions, Inc. ("Adelphia Solutions" or the "Company") (Pink Sheets:ABIZQ) common stock during the period between January 6, 2000 and March 27, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be obtained from The Emerson Firm.
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.
If you bought Adelphia Solutions common stock between January 6, 2000 and March 27, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than July 9, 2002. If you are a member of this class, you can join this class action by contacting The Emerson Firm. Any member of the purported class may move the Court to serve as lead plaintiff through The Emerson Firm or other counsel of their choice.
The Emerson Firm has substantial experience representing investors in securities fraud class action lawsuits such as this. In fact, the Firm was recently appointed by a Court in Houston to the Plaintiffs' Counsel Steering Committee prosecuting the Enron retirement plan litigation. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm.
THE EMERSON FIRM
Investor Relations Department:
Tanya R. Autry
P.O. Box 25336
Little Rock, AR 72221-5336
Toll Free: 1-800-663-9817
E-mail: tanya.autry@worldnet.att.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca