NEW YORK, May 3, 2002 (PRIMEZONE) -- Kirby McInerney & Squire, LLP has filed a class action lawsuit on behalf of purchasers of shares of WorldCom, Inc. (Nasdaq:WCOM) between January 3, 2000, and April 29, 2002, inclusive. A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please contact us by phone at (888) 529-4787 or by email at mfleming@kmslaw.com.
The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the SEC thereunder, and seeks to recover damages.
The complaint alleges that WorldCom, Inc., Bernard J. Ebbers, its President and Chief Executive Officer and Directors James C. Allen, Max E. Bobbitt, and Francesco Galesi, together with WorldCom's auditors, Arthur Andersen, LLP violated the federal securities laws by making misrepresentations and/or omissions in connection with false and/or misleading financial statements. Particularly, Defendants misrepresented WorldCom's earnings in its public filings with the SEC and elsewhere as a result of failing to record write-downs of goodwill and other intangible assets associated with WorldCom's acquisition of numerous telecommunications companies at premium prices. The complaint further alleges that Defendants affirmatively misstated the value of goodwill and other intangible assets associated with WorldCom's acquisition of numerous telecommunications companies at premium prices and carrying such assets on WorldCom's balance sheet at the cost of acquiring them long after it had become apparent that WorldCom had overpaid to acquire such assets. Additionally, Defendants failed to disclose that WorldCom's goodwill and other intangible assets associated with WorldCom's acquisitions of numerous telecommunications companies at premium prices were being carried at unrealistically and misleadingly high values on WorldCom's balance sheet.
Kirby McInerney & Squire, LLP, specializes in complex litigation, including securities class actions. Kirby McInerney & Squire has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiff in a securities class action can be obtained at Kirby McInerney & Squire's Website at www.kmslaw.com.
Investors who purchased WorldCom, Inc. common stock during the period January 3, 2000 through April 29, 2002 may, no later than July 1, 2002, move the Court to serve as lead plaintiff of the proposed class, if they so choose. In order to serve as lead plaintiff, however, an investor must meet certain legal requirements, as set out in the Private Securities Litigation Reform Act of 1995. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Class members need not, however, seek appointment as lead plaintiff in order to share in any recovery resulting from this litigation.
For more information contact Ira M. Press, Esq. or Melissa Fleming at (888) 529-4787 or mfleming@kmslaw.com or visit our Website www.kmslaw.com.
Ira Press, Esq. Melissa Fleming, Paralegal KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.