BOULDER, Colo., Feb. 11, 2009 (GLOBE NEWSWIRE) -- The Shuman Law Firm today announced that it has filed a class action lawsuit in the United States District Court for the District of Colorado on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired the securities of Level 3 Communications, Inc. ("Level 3" or the "Company") (Nasdaq:LVLT) between February 8, 2007 and October 23, 2007, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning your rights or interests pertaining to this matter, please contact us by phone at (866) 974-8626 or email Kip B. Shuman, Esq. at kip@shumanlawfirm.com or Rusty E. Glenn, Esq. at rusty@shumanlawfirm.com.
The complaint charges Level 3 and certain of the Company's executive officers with violations of federal securities laws. Level 3 engages in the communications business in North America and Europe. The Company's network and Internet services include transport services, high speed Internet protocol services, dedicated Internet access, virtual private network services, co-location services and dark fiber services. Between December 2005 and January 2007, Level 3 also acquired several companies.
The complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Level 3's business, operations and prospects were materially false and misleading. Specifically, the Complaint alleges that defendants' public statements were false and misleading or failed to disclose or indicate that: (1) the Company's efforts to integrate the numerous acquired companies were not going well; (2) specifically, the Company was experiencing an increase in service activation times, which was negatively impacting the Company's service installation intervals and rate of revenue growth; (3) the Company was also experiencing challenges in its service management processes that were resulting in longer response times to resolve customers' network service issues; (4) steps taken by the Company to remedy the problems were not working, and actually were further complicating the issues and making them worse; (5) as a result of the above, the Company did not have adequate provisioning capability to convert its sales, or signed orders, into revenue generating service; (6) the Company lacked adequate internal controls; and (7), as a result of the above, the statements made by the defendants during the Class Period lacked a reasonable basis.
On October 23, 2007, Level 3 revealed that the Company was having extensive difficulties integrating the systems and customer-service processes of the numerous companies it had acquired, and these difficulties were causing an increase in service activation times. Moreover, Level 3 revised downward the Company's previously issued guidance for fourth quarter 2007 and full year 2008. On this news, shares of Level 3 declined $1.04 per share, or approximately 24%, to close on October 23, 2007 at $3.28 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by The Shuman Law Firm, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the class described above, you may move the Court, no later than April 6, 2009, 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 your rights or interests with respect to these matters, please contact Kip B. Shuman, Esq. or Rusty E. Glenn, Esq. toll free at (866) 974-8626 or via email at kip@shumanlawfirm.com or rusty@shumanlawfirm.com.
The Shuman Law Firm represents investors throughout the nation, concentrating its practice in securities class actions and derivative litigation. See www.shumanlawfirm.com.