PHILADELPHIA, June 24, 2002 (PRIMEZONE) -- On May 23, 2002, the law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit against certain officers and directors of Adelphia Business Solutions, Inc. ("ABIZ") (Pink Sheets:ABIZQ) namely John J. Rigas, James P. Rigas, Michael J. Rigas and Timothy J. Rigas, in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased ABIZ securities between January 6, 2000 and March 27, 2002, inclusive (the "Class Period"). ABIZ filed for bankruptcy on March 27, 2002 and is not named as a defendant in this action.
The Complaint alleges that defendants violated 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 between January 6, 2000 and March 27, 2002, thereby artificially inflating the price of ABIZ securities. The complaint alleges that, among other things, throughout the Class Period, ABIZ artificially inflated the reported number of telecommunications lines that it sold and installed deceiving the marketplace. In addition, the complaint alleges that defendants improperly caused ABIZ to pay the overhead expenses of Adelphia Communications Corporation ("Adelphia"), a company which owned a majority of ABIZ and was controlled by defendants. Furthermore, the Complaint alleges that defendants failed to disclose in its discussions of its own liabilities that Adelphia had in excess of $2.3 billion in off-balance sheet liabilities, limiting ABIZ's ability to obtain additional funding. On March 1, 2002, ABIZ announced that it would default on interest payments on certain secured notes. Subsequently, on March 27, 2002, defendants disclosed that Adelphia was liable for $2.3 billion of previously undisclosed debt. On that same day, ABIZ filed for bankruptcy.
If you purchased ABIZ securities during the period from January 6, 2000 through March 27, 2002, inclusive, you may, no later than July 9, 2002, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest'' in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest,'' and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in ABIZ securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class
interests." In Re: IKON Offices Solutions Securities Litigation.
Civil Action No. 98-4286(E.D.Pa.) (partial settlement for
$111 million approved May, 2000).
"...(Y)ou have acted the way lawyers at their best ought to act.
And I have had a lot of cases...in 15 years now as a judge and I
cannot recall a significant case where I felt people were better
represented than they are here ... I would say this has been the
best representation that I have seen." In Re: Waste Management,
Inc. Securities Litigation, Civil Action No. 97-C 7709
(N.D. Ill.) (settled in 1999 for $220 million).
If you purchased ABIZ securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire
Robin Switzenbaum, Esquire
Douglas Risen, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca