BALA CYNWYD, Pa., Aug. 12, 2002 (PRIMEZONE) -- A shareholder sued Montana Power Company ("Montana Power" or the "Company"), now known as Touch America Holdings, Inc. ("Touch America") (NYSE:TAA) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the District of Montana, Butte Division and seeks damages for violations of federal securities laws on behalf of all investors who bought Touch America Holdings, Inc. securities between January 30, 2001 and November 14, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Touch America Holdings, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Montana-based Touch America Holdings, Inc. 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, the Company was experiencing declining revenues in its telecommunications business; (b) that 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.
If you purchased Touch America Holdings, Inc. securities between January 30, 2001 and November 14, 2001, you may be a member of the class and have until August 26, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca