MINNEAPOLIS, April 17, 2003 (PRIMEZONE) -- A shareholder of ADC Telecommunications has filed a lawsuit, seeking class action status, in the United States District Court for the District of Minnesota on behalf of all persons who purchased the common stock of ADC Telecommunications, Inc. (Nasdaq:ADCT) ("ADC" or the "Company") from November 2, 2000 through March 28, 2001, inclusive (the "Class Period").
The shareholder is a Minnesota resident who purchased 2,000 shares of ADC stock in the open market on January 11, 2001. This shareholder is represented by the law firm of Zimmerman Reed, P.L.L.P., which has significant experience prosecuting class actions on behalf of investors. For more information about Zimmerman Reed, please consult the firm Website at www.zimmreed.com.
The Complaint alleges that ADC and certain of its officers issued materially false statements and omitted material facts concerning ADC's earnings and financial condition. Specifically, defendants represented that ADC would continue to achieve significant growth and that ADC, unlike its competitors and customers, would remain largely unaffected by a widespread downturn in the telecommunications industry which occurred in 2000.
ADC is a Minnesota-based company that offers value-added solutions of network equipment, software and systems integration services. The shareholder alleges that defendants, despite contrary public statements, knew the Company was not immune from the telecommunications downturn in that sales in the first quarter of 2001 (November, December, January) were declining rapidly, inventory was rising, competitors were experiencing a downturn, consumers were deferring purchases and the Company's investments in small technology companies was rapidly deteriorating.
Further, as a result of the downturn, the Company made plans to embark on cost-cutting activities which ultimately resulted in significant layoffs. However, despite those plans, it was not until March 28, 2001, that defendants substantially lowered fiscal 2001 earnings guidance, cut as many as 4,000 jobs and closed some facilities. On this news, the Company's stock plummeted to $8.21 per share, a decline of over 60% from the Class Period high.
The shareholder seeks to recover damages on behalf of all Class Members. Any shareholder who purchased or otherwise acquired ADC shares on the open market between November 2, 2000 and March 28, 2001 and wishes to act as a lead plaintiff, may move the court to act in that capacity not later than May 5, 2003. If you wish to discuss your rights as a lead plaintiff or as a class member, please contact Robert C. Moilanen or Carolyn Anderson at 800.755.0098 or 612.341.0400 or by e-mail: RCM@zimmreed.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca