PHILADELPHIA, March 15, 2002 (PRIMEZONE) -- Berger & Montague, P.C., (www.bergermontague.com) filed a class action against Advanced Switching Communications, Inc. (Nasdaq:ASCX) and five of its principal officers and/or directors and Morgan Stanley Dean Witter in the United States District Court for the Eastern District of Virginia on behalf of all persons or entities who purchased ASCX common stock during the period from October 4, 2000 through February 12, 2002.
The Complaint alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933 by issuing a materially false and misleading Registration Statement and Prospectus ("Prospectus") in connection with the Company's October 4, 2000 initial public offering ("IPO"), of 6,250,000 shares of common stock at $15 per share. The Complaint also alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between October 4, 2000 and February 12, 2002, thereby artificially inflating the price of Advanced Switching stock.
On October 4, 2000, Advanced Switching completed its IPO pursuant to a Prospectus in which it represented that it had signed a $24 million contract with Qwest Communications, Inc. ("Qwest"), that its A-4000 product was being shipped and that its A-4500 product would be available in 2001.
As alleged in the complaint, at the time of the IPO, the Prospectus concealed the material facts that Advanced Switching's largest customer was having significant problems with Advanced Switching products, another significant customer had informed the Company it had an excess of inventory and the agreement with Qwest was contingent on Advanced Switching complying with terms it could not complete. Moreover, since the Company had not even started on the A-4500, it was impossible that the A-4500 would be available in 2001. Following the IPO, defendants misrepresented that customers were deploying the A-4000, which, as alleged in the complaint, did not occur, and that Advanced Switching offered DS-O to OC-192 capability which, in fact, the Company had not been able to offer.
On February 5, 2002, the Company announced that its board had adopted a plan of liquidation. As alleged in the complaint, this plan of allocation amounted to an admission that Advanced Switching had been a complete failure as a public company because the A-4500 had not been made available in 2001 and the Qwest contract had failed due to Advanced Switching's inability to meet the terms.
Finally, on February 12, 2002, the Company announced that a major customer had asked revoked acceptance of equipment previously purchased and had asked for a $17 million refund due to a failure of the equipment to meet functionality requirements.
If you purchased Advanced Switching Communications, Inc. common stock during the period from October 4, 2000 through February 12, 2002, inclusive, you may, no later than April 22, 2002, move to be appointed lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery, is not, however, affected by the decision whether or not to serve as a lead plaintiff.
The law firm of Berger & Montague, P.C. has 55 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 has represented 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 Office 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 77-9 (N.D.Ill.) (settled in 1999 for $220 million).
If you purchased Advanced Switching common stock or have any questions concerning this notice or your rights with respect to this matter, you may contact:
Sherrie R. Savett, Esquire
Barbara A. Podell, Esquire
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