PHILADELPHIA, July 20, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C., (http://www.bergermontague.com) filed a class action suit on behalf of an investor against Marconi, PLC ("MONI" or the "Company") (Nasdaq:MONI) and two of its principal officers in the United States District Court for the Western District of Pennsylvania on behalf of all persons or entities who purchased Marconi, PLC American Deposit Receipts ("ADRs) during the period from April 11, 2001 through July 4, 2001, inclusive (the "Class Period").
The complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 for falsely reassuring investors during the class period that its revenues would rise this year, claiming that its geographic and business mix left it relatively immune from the economic downturn, and that is saw no need to change its guidance. For example, on April 11, 2001, in reaction to analyst concerns about the impact the economic downturn was having on the Company's industry, Defendants falsely assured the investing community that Marconi did not need to change it earning guidance because "the end demand is still there." However, less than three months later, on July 4, 2001, Marconi belatedly issued a profit warning, finally disclosing that tougher trading conditions in the three months to June meant that sales for the year would be 15 percent lower than last year. In addition, operating profit would be down by 50 percent for the year ending March 2002.
The disclosure of Marconi's true financial condition was devastating to shareholders. Marconi ADRs, which hit a class period high of $12.50 on May 2, 2001, and had closed at $7.03 on July 3, 2001, dropped by over fifty percent when trading resumed, and closed on July 5, 2001 at only $3.35 per share.
The complaint alleges that as a result of defendants' conduct, plaintiff and other members of the Class suffered damages. The lawsuit seeks to recover losses suffered by individual and institutional investors who purchased the Company's ADRs during the Class Period at artificially inflated prices.
If you purchased Marconi, PLC ADRs during the period from April 11, 2001 through July 4, 2001, inclusive, you may, no later than September 7, 2001 move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class members(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Marconi PLC, ADRs during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"...(Y)ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here ... I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased Marconi, PLC ADRs during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire Stuart J. Guber, Esq. Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Phone: 888-891-2289 or 215-875-3000 Fax: 215-875-5715 Website: http://www.bergermontague.com e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca