NEW YORK, Dec. 12, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces a class action lawsuit on behalf of purchasers of the securities of Dobson Communications Corporation ("Dobson" or the "Company") (Nasdaq:DCEL) between May 19, 2003 and August 9, 2004, inclusive (the "Class Period").
The complaint charges Dobson, Everett R. Dobson, Russell L. Dobson, Stephen T. Dobson, Douglas B. Stephens, Bruce R. Knooihuizen, and Richard D. Sewell, Jr. with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the defendants knew or recklessly disregarded the fact that the Company's growth in roaming minutes was eroding; (2) that the Company had been missing sales quotas, as its service, marketing and customer upgrade cots spiraled out of control; (3) that the Company's largest equity interest holders AT&T and Bank of American intended to dispose of their interests in Dobson; and (4) that the Company lacked adequate internal controls to ascertain the true financial condition of the Company.
On February 17, 2004, Dobson reported operating income of $48.6 million for the fourth quarter ended December 31, 2003. The results were disappointing due to weak growth in roaming minutes and very large reduction in 2004 guidance. This news shocked the market. Shares of Dobson fell $2.65 per share, or 36.55 percent, on February 18, 2004, to close at $4.60 per share. On August 9, 2004, Dobson reported a net loss applicable to common shareholders of $15.9 million, or $0.12 per share, for the second quarter ended June 30, 2004. On this news, shares of Dobson fell an additional $1.30 per share, or 54.17 percent, on August 10, 2004, to close at $1.10 per share.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Dobson securities on any exchange between May 19, 2003 and August 9, 2004, and sustained damages, you may, no later than December 21, 2004, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.