ATLANTA, Aug. 19, 2002 (PRIMEZONE) -- Holzer & Holzer announced today that it has filed a class action in the United States District Court for the Northern District of Georgia on behalf of purchasers of BellSouth Corporation, ("BellSouth" or the "Company") (NYSE:BLS) securities between January 22, 2001 and July 19, 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 defendants violated the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by artificially inflating the price of BellSouth securities during the Class Period through a series of material misrepresentations. Specifically, the complaint alleges that defendants reported quarter after quarter of "record" financial results and growth despite a deteriorating market for telecommunications companies. The complaint alleges that the Company had been recognizing advertising and publishing revenues, purportedly in connection with the performance of services for customers who had not been billed ("phantom customers"), and that $163 million of this revenue was required to be reversed, thus violating Generally Accepted Accounting Principles.
The complaint alleges that on July 22, 2002, defendants revealed that BellSouth's earnings had dropped by 67% for the second quarter of 2002. The complaint alleges that the Company revealed that weak economic conditions in Central and Latin America had been, and were continuing to have a material, adverse impact on the Company's earnings and profitability. The complaint alleges that in response to the Company's July 22, 2002 revelation, BellSouth stock dropped by more than 18% to $22 per share. The complaint alleges that BellSouth executives, privy to the truth regarding BellSouth's financial condition, did not share in these losses, having sold millions of dollars of BellSouth stock.
If you bought the securities of BellSouth during the Class Period, you may, no later than October 14, 2002, move the Court to serve as a lead plaintiff in the action. 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