NEW YORK, April 5, 2002 (PRIMEZONE) -- The law firm of Abbey Gardy, LLP has filed a class action against Adelphia Communications Corporation (Nasdaq:ADLAC) ("Adelphia" or the "Company") in the United States District Court for the Eastern District of Pennsylvania, on behalf of all persons or entities who purchased Adelphia common stock during the period from April 2, 2001 through April 1, 2002, inclusive (the "Class Period").
The complaint charges Adelphia and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that, throughout the Class Period, Adelphia failed to disclose billions of dollars of off-balance sheet debt related to Highland Holdings. The complaint also alleges that 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. On March 27, 2002, the defendants disclosed the existence of the off-balance sheet debt. Then, 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 a party. 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 other Adelphia debt securities also materially declined.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Adelphia securities during the Class Period. If you purchased or otherwise acquired Adelphia securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Adelphia securities during the Class Period, you may, no later than June 3, 2002, request that the Court appoint you as 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 plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. or Jennifer Haas of Abbey Gardy, LLP at (800) 889-3701 or email JHaas@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.