NEW YORK, Sept. 24, 2004 (PRIMEZONE) -- In a significant victory for investors, on September 20, 2004, Manhattan Federal Judge Richard M. Berman ruled that buyers of stock issued by Interspeed, a now-defunct corporation that developed internet DSL technology, could proceed with a class-action lawsuit against UBS Warburg LLC and former UBS Warburg Senior Telecommunications Analyst Anton Wahlman. Co-lead counsel for the Plaintiff Class are Marc I. Gross of Pomerantz Haudek Block Grossman & Gross LLP, and Brian P. Murray of Murray, Frank & Sailer LLP.

The lawsuit alleges, among other matters, that between January 3, 2000 and July 20, 2000, UBS Warburg distributed research reports written by Wahlman that were false and misleading because they maintained a "buy" rating on Interspeed stock while, at the same time, Wahlman was privately sending e-mails to UBS personnel indicating that he believed that Interspeed stock should be shorted. The lawsuit also charges that Wahlman's research reports were false and misleading because Wahlman failed to disclose to the investing public his belief that Interspeed was engaging in "creative accounting."

According to the Complaint, for example, On January 3, 2000, UBS Warburg issued a research report by Wahlman that rated Interspeed a "buy." Just two days later, Wahlman privately e-mailed a member of UBS Warburg's sales force, "(d)on't put people into Interspeed -- very risky." Fifteen minutes later, the recipient of the e-mail responded, asking "so why is (Interspeed) a short?" Wahlman replied, "(j)ust lumpy revenue, some stuffing of channel, creative accounting."

The lawsuit charges that UBS Warburg's and Wahlman's motive for issuing the fraudulent analyst reports was the desire to garner investment banking fees from Interspeed. The Complaint alleges that UBS Warburg earned $700,000 for underwriting Interspeed's 1999 initial public offering.

The lawsuit also charges that if UBS Warburg had published truthful reports by Wahlman, the stock price of Interspeed would have plummeted.

Plaintiffs will now have the opportunity to seek discovery from UBS Warburg, Wahlman and others, and to prepare the case for trial.

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.

Pomerantz Haudek Block Grossman & Gross LLP
Marc I. Gross, Esq.
(212) 661-1100, ext. 239 
migross@pomlaw.com

Murray, Frank & Sailer LLP
Brian P. Murray, Esq.
(212) 682-1818 
BMurray@murrayfrank.com