NEW YORK, July 21, 2002 (PRIMEZONE) -- Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") today announced that a securities class action has been commenced on behalf of shareholders who acquired Montana Power Company, n/k/a Touch America Holdings, Inc. ("Touch America ") (NYSE:TAA) securities between January 30, 2001 and November 14, 2001, inclusive (the "Class Period"). The case is pending in the United States District Court for the District of Montana, against defendants Touch America and Robert Gannon.
The complaint charges Touch America Holdings, Inc. and certain of its officers and directors violated the federal securities by issuing false and misleading statements concerning its business and financial condition. Specifically, defendants issued positive statements regarding the Company's successful restructuring from an energy company into a standalone telecommunications company. These statements were materially false and misleading because they failed to disclose material adverse facts which were known to defendants or recklessly disregarded by them, including: (a) that the Company was having problems with the assets that it acquired from Qwest Communications International ("Qwest") -- which had become its principal assets in lieu of the power generation assets which it had sold -- and in its relationship with Qwest. As a result of these problems: (a) the Company was experiencing declining revenues in its telecommunications business; (b) the Company's broadband division was experiencing declining demand for its products and services; and (c) as a result of the foregoing, the Company's purported transformation to a standalone telecommunications company was not meeting with success.
On November 14, 2001, the last day of the Class Period, Montana Power issued a press release announcing its financial results for the third quarter of 2001, the period ending September 30, 2001, and disclosed that the Company's quarterly losses, "reflect the continued slowing of the nation's economy and the difficult transition of Montana Power from a diversified energy company to Touch America..." The press release further revealed that, as a result of its poor third quarter results, the Company was not in compliance with certain financial covenants under its Senior Secured Credit Facility. Finally, the press release revealed that the Company was engaged in litigation with Qwest concerning its purchase of certain assets from Qwest in June 2000 -- litigation which had been ongoing since August 2001, but not meaningfully revealed to investors. Following this announcement, the price of Montana Power common stock closed at $4.70 per share on heavy trading volume. During the Class Period, Montana Power common stock traded as high as $22.78 per share.
If you are a member of the Class, you may move the court no later than August 26, 2002 to serve as a lead plaintiff for the Class. In order to be appointed lead plaintiff, the Court must determine, among other things, 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 plaintiff." Your ability to share in any recovery is not, however, affected by whether or not you serve as a lead plaintiff.
Wechsler Harwood, has extensive experience in prosecuting investor class actions involving securities fraud, antitrust and consumer class actions. For more information about Wechsler Harwood Halebian & Feffer LLP, please visit its website at www.whhf.com.
If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 or by Email to: Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whhf.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.
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CONTACT: Wechsler Harwood Halebian & Feffer LLP
Shareholder Relations Department:
Craig Lowther
(877) 935-7400
clowther@whhf.com