LITTLE ROCK, Ark., March 23, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it has filed a class action in the United States District Court for the Northern District of California on behalf of all individuals and institutional investors that purchased the securities of NorthPoint Communications Group Inc. ("NorthPoint" or the "Company") (Nasdaq:NPNT)(Nasdaq:NPNTQ) between August 8, 2000 and November 29, 2000, inclusive (the "Class Period").
The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's financial condition and future growth potential, and as a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period. NorthPoint provides high speed local data network services using digital subscriber line technology to transport data at faster speeds than common dial-up modems. The Company markets its network and data transport services to Internet service providers, broadband data service providers, and long-distance telephone companies.
On October 26, 2000, after the close of trading, NorthPoint announced its Q3 2000 financial results in a press release stating that such results were the result of NorthPoint's "conservative revenue recognition policy." On November 20, 2000, the Company announced that it would restate its Q3 2000 financial statements (which just one month prior they claimed were based on "conservative" accounting) as a result of accounting misstatements that would require eliminating $6 million in revenue to be removed from the quarter for failing to comply with Generally Accepted Accounting Principles. On November 29, 2000, Verizon Communications ("Verizon") withdrew from a merger agreement with NorthPoint, citing NorthPoint's deteriorating financial condition and false quarterly reporting as a reason. Thus, Verizon would not continue to fund NorthPoint's operations leaving NorthPoint to operate on its own. In response NorthPoint's shares plunged to just pennies per share.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by April 17, 2001. You are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP
Sue Null, Charlie Gastineau or Jackie Addison
P.O. Box 25438
Little Rock, AR 72221
Toll Free: 1-888-551-9944
E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca