NEW YORK, Nov. 8, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of Ohio, Western Division, on behalf of all purchasers of Broadwing, Inc. ("Broadwing" or the "Company") (NYSE:BRW) securities between January 17, 2001 through May 20, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com.
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Broadwing's financial results and business prospects. Specifically, the complaint alleges that Broadwing continuously touted strong year-over-year revenue increases as well as its unique attributes which purportedly immunized it from an industry-wide downturn and related "bandwidth glut." Moreover, it estimated goodwill assets of approximately $2.2 billion. On May 20, 2002, however, it was revealed that Broadwing (a) derived at least 25% of its broadband revenue from one-time long term bandwidth leases with cash paid up-front in 2001; (b) improperly accelerated recognition of at least $32.4 million in revenue from a bankrupt entity; (c) engaged in sham sales swaps artificially increasing sales figures; and (d) overestimated goodwill between $1.2 and $1.8 billion. These revelations resulted in a share price decline of 30% in a single day, falling from $5.28 per share at close on May 20, 2002 to $3.70 per share at close on May 21, 2002 on trading of 24.7 million shares.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Broadwing securities between January 17, 2001 through May 20, 2002, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com.
If you purchased Broadwing securities during the Class Period, you may, not later than December 30, 2002, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ERIC CRUSIUS, ESQ. ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: Ecrusius@faruqilaw.com, Avozzolo@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca