ATLANTA, June 10, 2002 (PRIMEZONE) -- Holzer & Holzer announced today that a class action has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of Adelphia Business Solutions, Inc. (Pink Sheets:ABIZQ) ("Adelphia Solutions" or the "Company") common stock during the period between January 6, 2000 and March 27, 2002, inclusive (the "Class Period"). A copy of the complaint filed is available from the Court or by contacting Holzer & Holzer (toll-free) at (888) 508-6832 or by sending an e-mail to michaelfisteljr@msn.com.
The complaint alleges that John J. Rigas, Chairman of the Board of Directors, Michael J. Rigas, Vice Chairman, Secretary and Director, Timothy J. Rigas, Vice Chairman, CFO, Treasurer and Director, and James P. Rigas, Vice Chairman, CEO, President and Director issued false and misleading statements concerning the Company's business and financial condition. Specifically, the complaint alleges that Defendants issued materially false and misleading statements regarding the financial condition and results of Adelphia Solutions during the Class Period. The complaint alleges that the Defendants failed to disclose that because of the deceptive sales practices instituted by or approved of by the Defendants, Adelphia Solutions reported artificially inflated line counts (lines that Adelphia Solutions had sold to customers). The complaint alleges that Defendants also committed Adelphia Solutions to pay overhead expenses to Adelphia Communications Corp. (Which was also controlled by the Defendants) without maintaining proper accounting records of these expenses. Additionally, the complaint alleges that throughout the Class Period, Defendants failed to disclose in excess of $2 billion of off-balance sheet liabilities for Adelphia Communications Corp. Due to Adelphia Solutions' dependence on the Defendants and Adelphia Communications Corp., the complaint alleges that the off-balance sheet liabilities should have been disclosed to Adelphia Solutions shareholders during the Class Period. The complaint further alleges that on March 1, 2002, Adelphia Solutions announced that it would not make an interest payment of $15.3 million on certain secured notes of the Company and would be in default. The complaint alleges that on March 27, 2002, Adelphia Communications Corporation announced its financial results and that it had entered into these off-balance sheet financing arrangements which obligated Adelphia Communications for approximately $2.3 billion in debts, together with Highland Holdings, an entity also controlled by the Defendants. The complaint alleges that on that same day, March 27, Adelphia Solutions announced that it had filed for Chapter 11 Bankruptcy protection.
If you bought Adelphia Solutions common stock between January 6, 2000 and March 27, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than July 9, 2002. In order to serve as a lead plaintiff, however, you must meet certain legal requirements. If you have any questions about your rights with respect to this lawsuit, you may contact Holzer & Holzer, Michael I. Fistel, Jr., Esq. (toll-free) at (888) 508-6832, or inquire via e-mail to michaelfisteljr@msn.com.
Holzer & Holzer has substantial experience representing investors in securities fraud class action lawsuits such as this. Holzer & Holzer is located in Atlanta, GA, but represents investors in securities class action lawsuits throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call the Firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca