BALA CYNWYD, Pa., Feb. 12, 2002 (PRIMEZONE) -- Shareholders of Infonet Services Corporation (NYSE:IN) who desire to serve as a lead plaintiff in a shareholder class action lawsuit now pending in federal court in California (02-00507) must submit an application with the Court by February 22, 2002 according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased Infonet Services Corporation securities between December 16, 1999 and July 31, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Infonet Services Corporation and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that the New York-based Infonet Services Corporation, from December 16, 1999 through July 31, 2001, saw its stock price soar from its IPO price of $21 per share to as high as $32.93 per share as Infonet misrepresented the true status of its AT&T-Unisource Communications Services N.V. ("AUCS") business, concealing the fact that: (a) the Company would be required to migrate the customer before offering new services, which required, among other things, reconnecting each customer to a new platform, a time-consuming, complicated and expensive process; (b) the complexity of migration (from company "X" to Infonet) caused massive disruption to the Company's ability to "upsell" its new products; and (c) the Company's AUCS business required massive upgrades, both in its financial data and billing systems, preventing the Company from billing its customers on a monthly basis and delaying the recognition of material revenue for 1-1/2 years until the upgrades could be completed.
The individual defendants knew that disclosure of these problems with its AACS business would devastate Infonet's chances of going public which allowed Infonet to raise $1.1 billion in its December 16, 1999 IPO. Infonet's top executives were determined to conceal the news of the problems associated with the Company's AACS business. As a result of the defendants' false statements/omissions, Infonet stock traded at inflated levels during the Class Period, increasing to as high as $32.93 on March 3, 2000. Infonet's shares began to fall as defendants partially revealed the status of the Company's AACS business, tumbling to $3.55 on August 1, 2001.
If you purchased Infonet Services Corporation securities during the period of December 16, 1999 through July 31, 2001, you may be a member of the class and have until February 22, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca