CHICAGO, April 26, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that class action lawsuits are pending in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of the securities of Adelphia Communications Corporation (Nasdaq:ADLAE) (formerly ADLAC) ("Adelphia" or the "Company") between April 2, 2001 and April 1, 2002, inclusive (the "Class Period"). The lawsuits are against defendants Adelphia; Timothy Rigas, Adelphia's Chairman, President and CEO; and/or John J. Rigas, Adelphia's CFO.
It has been alleged that defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of l934. More specifically, it has been alleged that defendants failed to disclose billions of dollars of off-balance sheet debt. Unbeknownst to investors, Adelphia guaranteed loans for certain entities controlled by the Rigas Family (the Company's controlling shareholder), who used the money, in substantial part, to purchase Adelphia securities. Defendants first disclosed the existence of the off-balance sheet debt during an earnings conference call on March 27, 2002. Then, on April 1, 2002, Adelphia announced that it was requesting an extension to file its Annual Report on Form 10-K with the Securities and Exchange Commission ("SEC"). The Company reported that the extension was being sought to allow the Company and its outside auditors additional time to review certain accounting matters relating to co-borrowing credit facilities to which Adelphia is party. In response to these negative announcements, the price of Adelphia common stock dropped from $20.39 per share on March 26, 2002, to $13.12 per share on April 1, 2002. The price of Adelphia common stock has continued to slide, closing yesterday at $7.25 per share.
On April 17, Adelphia reported that the SEC has issued a formal order of investigation "in connection with the matters that are the subject of Adelphia's previously disclosed SEC inquiry."
If you purchased Adelphia securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit(s) has been filed to serve as a lead plaintiff. You must file your motion no later than June 3, 2002.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, 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@muchlaw.com. Your e-mail should refer to Adelphia.
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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.