PHILADELPHIA, Sept. 5, 2003 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Alstom S.A. ("Alstom" or the "Company") (NYSE:ALS) American Depositary Receipts ("ADRs") during the period between May 26, 1999 and June 29, 2003, and who have been damaged thereby (the "Class Period").
The action, numbered 03cv6701, is against defendants Alstom, Pierre Bilger -- the Chairman and Chief Executive Officer until March 12, 2003, Patrick Kron -- the Chairman and Chief Executive Officer since March 12, 2003, Philippe Jaffre -- advisor to the Chairman and a member of the Board of Directors in February 2002 and since July 3, 2002, Chief Financial Officer. A copy of the Complaint is available from the Court or can be viewed on the Law Offices Bernard M. Gross, P.C. website at www.bernardmgross.com.
The Complaint charges, among other things, that throughout the Class Period, May 26, 1999 and June 29, 2003, Alstom and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by issuing numerous false and misleading statements concerning the growth and financial performance of its transportation subsidiary. These statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (a) that the Company had failed to recognize costs incurred in a rolling-stock supply railcar contract at its transportation unit in anticipation of shifting the costs to other contracts; (b) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (c) as a result of the foregoing, the value of the Company's losses was materially understated at all relevant times and the value of the Company's margins was materially overstated at all relevant times.
On June 30, 2003, before the U.S. market opened for trading, Alstom announced that it was "conducting an internal review assisted by external accountants and lawyers following receipt of letters earlier this month alleging accounting improprieties on a railcar contract being executed at the Hornell, New York facility of ALSTOM Transportation Inc. (ATI), a US subsidiary of the Company." As part of the review, the Company "identified that losses have been significantly understated in ATI's accounts, in substantial part due to accounting improprieties by the understatement of actual costs incurred, including by the non-recognition of costs incurred in anticipation of shifting them to other contracts, and by the understatement of forecast costs to completion." As a result, the Company announced that it would record an additional net after tax charge of 51 million euros ($58 million) for the year ended 31 March 2003.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you purchased ADRs of Alstom, S.A. during the period between May 26, 1999 and June 29, 2003, you may no later than October 28, 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. 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 R. Gross, Esq.
Deborah R. Gross, Esq.
1515 Locust Street, Suite 200
Philadelphia, PA 19102
Telephone: 866-561-3600 (toll free)
or 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