CHICAGO, Oct. 3, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that it has sued BellSouth Corporation ("BellSouth" or the "Company") (NYSE:BLS) and certain of its officers and directors in the United States District Court for the Northern District of Georgia. The shareholder lawsuit is on behalf of all persons and entities who purchased BellSouth securities during the period January 22, 2001 through July 19, 2002, inclusive ("Class Period").
The Complaint alleges that during the Class Period, BellSouth misled their investors by issuing false and misleading statements and failing to disclose material facts about the Company's business. These alleged misstatements had the effect of artificially inflating the price of BellSouth securities.
If you wish to discuss your rights and interests, have questions regarding this notice or have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C. by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to BellSouth.
The Complaint specifically alleges that throughout the Class Period BellSouth reported quarter after quarter of "record'' financial results and financial growth despite a rapidly deteriorating market for telecommunications companies. The Company ultimately was forced to reveal that its financial prospects were far worse than it had represented. At the end of the Class Period, for example, BellSouth had to take charges to earnings totaling over $418 million. BellSouth admitted that at least $163 million of the massive charges resulted from unbilled receivable balances that were overstated.
The Complaint is also based on BellSouth's representations during the Class Period that it reviewed its account receivables on a monthly basis. These representations were ultimately contradicted by BellSouth's admission that its overstatement of unbilled accounts had occurred over an extended period of time. In addition, the Complaint charges BellSouth with delaying the disclosure that a competitive local exchange carrier had stopped paying its bills and that the Company had ceased recognizing revenues for wholesale services provided to that customer, despite knowing these developments would materially and adversely affect the Company. On July 22, 2002, unable to conceal the decline in its business any longer, the Company announced that its earnings had dropped by an astonishing 67% for the second quarter of 2002. BellSouth dropped sharply on the news, plummeting over 18% to $22.61 per share.
Plaintiff seeks to recover damages on behalf of all those who purchased BellSouth securities during the Class Period (January 22, 2001 through July 19, 2002). If you purchased BellSouth securities during the Class Period and either lost money on the transactions or still hold the common stock, you may, if you meet certain other legal requirements, file a motion to serve as a lead plaintiff. You must file your motion no later than October 15, 2002.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion. Please visit the Much Shelist website for more information about the firm (www.muchshelist.com).
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca