BATON ROUGE, La., April 8, 2002 (PRIMEZONE) -- An investor sued Adelphia Communications Corporation (Nasdaq:ADLAC) today, claiming that the company deceived investors about its true financial condition, LeBlanc & Waddell LLC said.
The complaint was filed in the U.S. District Court for the Eastern District of Pennsylvania and seeks damages for violations of federal securities laws on behalf of all investors who bought Adelphia common stock and/or sold put options from April 2, 2001 through March 27, 2002 (the Class Period).
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 suit named four members of the Rigas family, the majority owners of the company, as individual defendants.
According to the complaint, Highland Holdings, a partnership controlled by the Rigas family, borrowed the $2.284 billion against credit facilities that were co-guaranteed by Adelphia. The Rigases then used some of the loans' proceeds to buy more Adelphia stock, the complaint maintains. The information, which would have affected the company's stock price, was not disclosed to investors during the Class Period. The SEC is investigating the company's accounting practices.
On March 27, 2002, the complaint says, the company revealed the existence of the off-balance-sheet debt. The company's stock quickly fell 18%, or $3.69, to close at $16.70 that day. The following day, the stock price dropped an additional 11%, or $1.80, to close at $14.90, wiping out more than $1 billion in market capitalization.
If you purchased Adelphia common stock or sold put options during the period April 2, 2001 through March 27, 2002, you may wish to contact the following attorneys at LeBlanc & Waddell LLC to discuss your rights and interests:
Roger LeBlanc, Esq.
Chad A. Dudley, Esq.
LeBlanc & Waddell, LLC
5353 Essen Lane, Suite 420
Baton Rouge LA 70809
rogerleblanc@lw-law.net
(800) 988-3514
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than June 3, 2002. You may contact the attorneys at LeBlanc & Waddell LLC to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
With offices in Baton Rouge, New Orleans, Shreveport, Monroe and Slidell, Louisiana, LeBlanc & Waddell, LLC represents investors in securities class action lawsuits and has experience in prosecuting class actions. The firm prides itself on its responsiveness to shareholders and their needs in each case.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca