CHICAGO, June 7, 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 Northern District of Illinois on behalf of purchasers of the securities of Universal Access, Inc. or Universal Access Global Holdings, Inc. (collectively, "Universal Access" or the "Company") (Nasdaq:UAXS) between May 10, 2001 and April 24, 2002, inclusive ("Class Period").
It has been alleged that Universal Access; Patrick C. Shutt, CEO and Chairman; Robert M. Brown, CFO; Robert E. Rainone, Jr., President of Global Operations for Universal Access; George A. King, President of Client Services of Universal Access; Robert J. Pommer, Vice Chairman; Scott D. Fehlan, General Counsel and Secretary; and Paolo Guidi, Director, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market.
According to the allegations, Chicago-based Universal Access, an independent provider of network infrastructure services that facilitate the interconnection of communications networks between disparate and competing service providers, and defendants failed to adequately disclose the Company's adoption of a new business model and the attendant and material risks facing Universal Access as a result. Additionally, it has been alleged that the Company issued financial statements that violated Generally Accepted Accounting Principles by improperly recording revenue for contingent contracts. It has also been alleged that Universal Access improperly recognized revenue for "capacity swaps" with other communications companies, which had no real business purpose and artificially inflated Universal Access' reported revenues.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you 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 Universal Access.
If you purchased Universal Access securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than June 25, 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.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca