NEW YORK, Sept. 4, 2002 (PRIMEZONE) -- A class action Complaint has been filed in the United States District Court for the Northern District of Georgia, civil action number 02-CV-2439, on behalf of all persons or entities who purchased or otherwise acquired securities of BellSouth Corp. ("BellSouth" or the "Company") (NYSE:BLS) between January 22, 2001 through July 19, 2002, both dates inclusive (the "Class Period"). BellSouth, F. Duane Ackerman, W. Patrick Shannon, and Ronald M. Dykes 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, 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.
The Complaint alleges that defendants violated section 10(b) of the Securities Exchange Act of 1934 and section 12(a)(2) of the Securities Act of 1933 by issuing a series of materially false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that defendants reported quarter after quarter of "record" financial results and financial growth despite a rapidly deteriorating market for telecommunications companies. In fact, as the Company was ultimately forced to reveal, the financial prospects for BellSouth were far from the Company's representations.
On July 22, 2002, defendants revealed that BellSouth's earnings had dropped by an astonishing 67% for the second quarter of 2002, missing Wall Street estimates. The Company revealed that weak economic conditions in Central and Latin America had been, and were continuing to have a material, adverse impact on the Company's earnings and profitability. In response to the Company's devastating July 22, 2002 news, BellSouth stock plummeted by over 18% to $22 per share. BellSouth executives, privy to the truth concerning BellSouth's financial condition, did not share in these losses, having sold millions of dollars of BellSouth stock.
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 BellSouth securities during the Class Period described above, you may, no later than October 14, 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