NEW YORK, May 17, 2002 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit on behalf of all purchasers of Universal Access, Inc. or Universal Access Global Holdings, Inc. (Nasdaq:UAXS) common stock during the period from May 10, 2001 through April 24, 2002 (the "Class Period"). The case is pending in United States District Court for the Northern District of Illinois, Eastern Division.
A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please visit our website, which offers summary and detailed information concerning the case at www.kmslaw.com/new_cases/univ_access/univaccess.htm, or contact us by phone at (888) 529-4787 or by email at mkennedy@kmslaw.com.
The action charges Universal Access, as well as seven of its senior officers including its Chief Executive Officer and Chief Financial Officer, with violations of Sections 10(b) and 20(a) or the Securities Exchange Act of 1934. These violations, the complaint alleges, stem from defendants' materially false and misleading statements during the Class Period that, as detailed below: (i) misrepresented the Company's business, operations and financial performance; and (ii) caused the Company's shares to trade at artificially-inflated prices.
The complaint charges 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 materially false and misleading statements to the market between May 10, 2001 and April 24, 2002. The complaint alleges that defendants failed to adequately disclose the Company's adoption of a new business model and the attendant and material risks facing Universal Access as a result. Furthermore, the complaint alleges that the Company issued financial statements which violated Generally Accepted Accounting Principles ("GAAP"), by improperly recording revenue for contingent contracts. In addition, the complaint alleges that Universal Access also improperly recognized revenue for "capacity swaps" with other communications companies, which had no real business purpose and artificially inflated Universal Access' reported revenues.
Plaintiff is represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than June 25, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq. Michele Kennedy KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: mkennedy@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca