PHILADELPHA, May 25, 2002 (PRIMEZONE) -- Spector, Roseman & Kodroff, P.C. has commenced a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of WorldCom, Inc. ("WorldCom" or the "Company") (Nasdaq:WCOM) common stock between May 15, 1999 and April 21, 2002 (the "Class Period"), inclusive, against Salomon Smith Barney, Inc. ("Salomon") and its well known telecommunication analyst Jack Grubman ("Grubman") for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Spector, Roseman & Kodroff, P.C. is involved in several similar suits against Merrill Lynch and its Internet analyst Henry Blodget.
The Complaint alleges that defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated thereunder, by the issuance of analyst reports regarding WorldCom which recommended the purchase of WorldCom common stock and which set price targets for WorldCom common stock without any reasonable factual basis. When issuing their WorldCom reports, defendants failed to disclose significant, material conflicts of interest which they had, in light of their use of Grubman's reputation and his WorldCom analyst reports, to obtain investment banking business for Salomon.
Plaintiffs seek to recover damages on behalf of all those who purchased shares of WorldCom common stock during the Class Period. If you bought WorldCom securities between May 15, 1999 and April 21, 2002, you may, no later than July 12, 2002 request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative chosen by the Court that acts on behalf of other class member's behalf 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 WorldCom securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the lead plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the lead plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/recentsecuritiesfilings.asp. To discuss this action or if you have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.