NEW YORK, Feb. 13, 2009 (GLOBE NEWSWIRE) -- A securities class action lawsuit was filed in the United States District Court for the District of Colorado on behalf of a 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").
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, colocation 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 increasing 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 Company and management during the Class Period lacked a reasonable basis.
On October 23, 2007, Level 3 shocked the market when it 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, on unusually heavy trading volume.
If you acquired shares of Level 3 during the Class Period, you may, no later than April 6, 2009, request the Court to appoint you lead plaintiff. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions that could affect the overall recovery for class members, including decisions concerning settlement.
If you wish to discuss this action, or have any questions concerning this notice or your rights, please contact us, toll free, at (888) 529-4787 or by email at info.newcases@kmllp.com
Kirby McInerney LLP has specialized in complex litigation, including securities class actions, for several decades. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and the firm's achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiffs in a securities class action can be obtained through Kirby McInerney LLP's website at http://www.kmllp.com