PHILADELPHIA, April 22, 2002 (PRIMEZONE) -- Shareholders are pursuing a lawsuit to recoup stock losses suffered after Adelphia Communications Corporation (Nasdaq:ADLAC) revealed its exposure to over $2 billion of off-balance-sheet debt, Berman DeValerio Pease Tabacco Burt & Pucillo said today.
The complaint was filed April 3, 2002 in the U.S. District Court for the Eastern District of Pennsylvania and seeks damages for violations of federal securities laws on behalf of all investors who bought Adelphia common stock and/or sold put options from April 2, 2001 through March 27, 2002 (the Class Period).
Berman DeValerio has represented investors in class actions for 20 years. To review the complaint and learn more about becoming a lead plaintiff, visit the firm's website at www.bermanesq.com. The complaint charges Adelphia, a provider of cable television and local telephone service, with failing to disclose the company's liability from at least
$2.284 billion in off-balance-sheet debt during the Class Period. The suit named four members of the Rigas family, which has a controlling interest in the company, as individual defendants.
According to the complaint, Highland Holdings, a partnership controlled by the Rigas family, borrowed the $2.284 billion against credit facilities that were co-guaranteed by Adelphia. The Rigases then used some of the loans' proceeds to buy more Adelphia stock, the complaint maintains. The information, which would have affected the company's stock price, was not disclosed to investors during the Class Period. The SEC is investigating the company's accounting practices.
On March 27, 2002, the complaint says, the company revealed the existence of the off-balance-sheet debt. The company's stock quickly fell 18%, or $3.69, to close at $16.70 that day. The following day, the stock price dropped an additional 11%, or $1.80, to close at $14.90, wiping out more than $1 billion in market capitalization. If you purchased Adelphia common stock or sold put options during the period April 2, 2001 through March 27, 2002, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests:
Nancy Ghabai, Esq. Alicia Duff, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
You may also visit the firm's website at www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than June 3, 2002. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations and consumer fraud. The firm consists of 34 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca