NEW YORK, Aug. 28, 2002 (PRIMEZONE) -- A class action Complaint has been filed in the United States District Court for the Southern District of New York, civil action number 02-CV-6796, on behalf of all persons or entities who purchased securities of Winstar Communications, Inc. ("Winstar" or the "Company") (Pink Sheets:WCIIO) (Pink Sheets:WCIIP) between August 13, 1999 through April 16, 2001, both dates inclusive (the "Class Period"). Salomon Smith Barney, Inc. and Jack Grubman are named as defendants in the complaint.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, New York 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.
The complaint charges Winstar and certain of its officers and directors with violations of the Securities Exchange Act of 1934. This action arises as a result of the issuance by the defendants of analyst reports regarding Salomon, which recommended the purchase of Winstar common stock and which set price targets for Winstar common stock, without any reasonable factual basis. The Complaint alleges that when issuing their Winstar reports, the defendants failed to disclose significant, material conflicts of interest which they had, in light of their use of Grubman's reputation and his Winstar analyst reports, to obtain investment banking business for Salomon. Furthermore, in issuing their Winstar reports, in which they recommended the purchase of Winstar stock, the defendants failed to disclose material, non-public, adverse information which they possessed about Winstar as well as their true opinion about Winstar's financial prospects and viability as an entity going forward.
The Complaint further alleges that throughout the Class Period, Grubman maintained a "buy" recommendation on Winstar in order to obtain and support lucrative financial deals for Salomon. Unbeknownst to the investing public, Salomon was seeking to be retained as a financial adviser for other telecommunication companies. Such investment banking engagements were worth millions of dollars in fees to Salomon.
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 Winstar securities during the Class Period described above, you may, no later than October 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. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.