PHILADELPHIA, June 17, 2003 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. announces that a class action has been commenced in the United States District Court for the Southern District of Florida on behalf of purchasers of TYCO International Ltd ("TYCO") (NYSE:TYC) securities during the period between December 30, 2002 through and including March 12, 2003 (the"Class Period"). A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please visit our website at www.bernardmgross.com or contact us by phone at 866-561-3600 (toll free) or by email at susang@bernardmgross.com.
The action numbered 03cv80479 is pending in the United States District Court, Southern District of Florida, West Palm Beach Division, located at 701 Clematis St., Room 402, West Palm Beach, Florida against defendants Tyco International Ltd. and Edward D. Breen -- Chairman and Chief Executive Officer. The complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of TYCO securities.
The complaint alleges, among other things, that at the start of the class period, December 30, 2002, defendants filed an 8-K reporting the conclusion of an investigation of Tyco's accounting and corporate governance. Defendants identified charges, reflecting accounting errors in fiscal year 2002, which totaled $382.2 million. When defendants issued their financial statements, they assured the marketplace that there was no systemic or significant fraud related to the financial statement or of any clear accounting errors affecting the year 2003. Additionally, defendants assured the market that this intensive review was to build Tyco's credibility, strengthen Tyco's accounting practices and fulfill its commitment to investors. Shortly thereafter, ADT raised billions of dollars in the marketplace through the issuance of new securities and were able to negotiate new lines of credit with its lenders.
However, in fact, defendants embarked on a scheme and course of conduct to misrepresent the true current financial and operating condition of, and financial prospects for Tyco and its ADT business segment by failing to disclose that there were additional material accounting adjustments that would be required to be made to Tyco's financial statements in order to properly present its financial condition and that those adjustments would reduce Tyco's earnings materially below the levels defendants had conditioned the market to expect in fiscal year 2003. On March 12, 2003, after the close of trading on the NYSE, defendants stunned the market by announcing "that in the quarter ending March 31, 2003, it expects to take non-cash, pre-tax charges that are estimated to be between $265 million and $325 million for issues identified primarily in its (ADT) business. These charges are expected to lower earnings by $0.09 to $0.11 per share." In response to this announcement, the price of Tyco common stock fell from a close of $14.03 per share on March 12, 2003 to close at $12.18 per share on March 13, 2003, on unusually large trading volume of 89,694,200 shares.
Plaintiff seeks to recover damages on behalf of the class. If you are a member of the class described above, you may, not later than August 18, 2003, 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. Plaintiff is represented by the law firm of Law Offices Bernard M. Gross, P.C. having significant experience and expertise in prosecuting class actions. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C.
Susan Gross, Esq.
Deborah R. Gross, Esq.
1515 Locust Street, 2nd Floor
PHILADELPHIA, PA 19102
Telephone: 866-561-3600 (toll-free)
215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca