PHILADELPHIA, April 19, 2002 (PRIMEZONE) -- On April 3, 2002, the law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit against Adelphia Communications Corporation ("ADLAC") (Nasdaq:ADLAC) and certain of its principal officers and directors, John J. Rigas, James P. Rigas, Michael J. Rigas and Timothy J. Rigas, in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased ADLAC securities, including common stock and/or notes, between January 19, 2001 and April 1, 2002, inclusive (the "Class Period").
The Complaint alleges that defendants violated Section 10(b) and 20(a) of the Securities and Exchange Act of l934. More specifically, the Complaint alleges that defendants failed to disclose billions of dollars of off-balance sheet debt. Unbeknownst to investors, ADLAC guaranteed loans for certain entities controlled by the Rigas Family (the Company's controlling shareholder), who used the money, in substantial part, to purchase ADLAC securities. Defendants first disclosed the existence of the off-balance sheet debt during an earnings conference call on March 27, 2002. Then, on April 1, 2002, ADLAC 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 ADLAC is party to. In response to these negative announcements, the price of ADLAC common stock dropped from $20.39 per share on March 26, 2002, to $13.12 per share on April 1, 2002. The price of ADLAC common stock continues to decline. Today, ADLAC announced the SEC is conducting an informal investigation. The price of other ADLAC securities have also materially declined.
If you purchased ADLAC securities, including common stock and/or notes, during the period from January 19, 2001 through April 1, 2002, inclusive, you may, no later than June 3, 2002, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party 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 ADLAC securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 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 is currently representing 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 Offices 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 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased ADLAC securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire
Robin Switzenbaum, 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
An amended complaint was filed on April 4, 2002 to correct the ending date for the class period as April 1, 2002.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca