PHILADELPHIA, April 3, 2002 (PRIMEZONE) -- Spector, Roseman & Kodroff, P.C., filed a class action suit on behalf of purchasers of the securities of Adelphia Communications Corporation ("Adelphia" or the "Company") (Nasdaq:ADLAC) between April 2, 2001 and April 1, 2002, inclusive.
The action is pending in the United States District Court, Eastern District of Pennsylvania, located at 601 Market Street, Philadelphia, PA, against defendants Adelphia, Timothy Rigas (CFO) and John J. Rigas (President, CEO and Chairman).
The complaint charges Adelphia, a provider of cable television and local telephone service, with failing to disclose the company's liability from at least $2.284 billion in off-balance-sheet debt during the Class Period. The Complaint specifically 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 April 2, 2001 and April 1, 2002, thereby artificially inflating the price of Adelphia securities.
Throughout the Class Period, plaintiff alleges that Adelphia failed to disclose billions of dollars of off-balance sheet debt. As alleged in the complaint, unbeknownst to investors, Adelphia guaranteed credit facilities for certain closely-held partnerships, which are controlled by the Rigas Family (the Company's controlling shareholder), and which used the money, in substantial part, to purchase securities from Adelphia. Defendants first disclosed the existence of the off-balance sheet debt during an earnings conference call on March 27, 2002.
On April 1, 2002, Adelphia announced that it was requesting an extension to file its Annual Report on Form 10-K with the SEC. The Company reported that the extension was being sought to allow the Company and its outside auditors additional time to review certain accounting matters relating to co-borrowing credit facilities which Adelphia is party to. In response to these negative announcements, the price of Adelphia common stock dropped from $20.39 per share on March 26, 2002, to $13.12 per share on April 1, 2002. The price of Adelphia debt securities also materially declined. The Company also acknowledged that it is the subject of an informal inquiry by the Securities and Exchange Commission.
If you bought the securities of Adelphia between April 2, 2001, and April 1, 2002 you may, no later than June 3, 2002, request that the Court appoint you as lead plaintiff. A Lead Plaintiff is a representative, chosen by the Court, 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 member(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 Adelphia Communications Corp. securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C., at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.