NEW YORK, Oct. 25, 2002 (PRIMEZONE) -- Kaplan Fox (kaplanfox.com) has filed a class action on October 11, 2002 against Citigroup Inc. ("Citigroup"), Salomon Smith Barney Inc. ("Salomon") and Jack Grubman, in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the common stock of XO Communications, Inc. ("XO" or the "Company") (OTCBB:XOXOQ) formerly Nasdaq:XOXOQ between October 11, 1997 and November 1, 2001, inclusive (the "Class Period").
The complaint alleges that Defendants violated the federal securities laws by issuing analyst reports regarding XO that recommended the purchase of XO common stock and which set price targets for XO common stock, without any reasonable factual basis. The complaint further alleges, among other things, that when issuing its XO analyst reports, Defendants failed to disclose significant, material conflicts of interest which it had concerning the XO reports, because of Salomon's desire to obtain investment banking business from XO. Throughout the Class Period, Defendants maintained a "BUY" recommendation on XO in order to obtain and support lucrative financial deals for Salomon.
The Class Period begins on October 11, 1997, at which time Salomon rated XO common stocks as a "BUY" after initiated coverage of XO on September 26, 1997. The Class period ends on November 1, 2001, the date Defendants belatedly downgraded XO form a "BUY" to a "NEUTRAL."
As a result of Defendants' false and misleading analyst reports, XO common stock traded at artificially inflated levels during the class period.
Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Chicago and New Jersey, has many years of experience prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com
If you are a member of the Class, you may move the court no later than December 24, 2002 to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements.
If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@kaplanfox.com or contact:
Frederic S. Fox, Esq. Donald R. Hall, Esq. Kaplan Fox & Kilsheimer LLP 805 Third Avenue, 22nd Floor New York, NY 10022 (800) 290-1952 (212) 687-1980 Fax: (212) 687-7714 E-mail address: mail@kaplanfox.com Laurence D. King, Esq. Kaplan Fox & Kilsheimer LLP 601 Montgomery Street San Francisco, CA 94111 (415) 772-4700 Fax: (415) 772-4707 E-mail address: mail@kaplanfox.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca