PHILADELPHIA, May 25, 2002 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. today announced that it will amend the class action filed it filed on behalf of its clients and investors of the securities of Adelphia Communications Corporation ("Adelphia" or the "Company") (Nasdaq:ADLAE) who purchased Adelphia securities in the period from April 2, 2001 through April 1, 2002, inclusive (the "Class Period").
The action is pending in the United States District Court, Eastern District of Pennsylvania, located at 601 Market Street, Philadelphia, PA, against defendants Adelphia, Timothy Rigas (CFO) and John J. Rigas (President, CEO and Chairman).
Plaintiff will amend the Complaint to include allegations of recent events disclosed to the public, which include that: (a) the debt incurred by the Rigas family is $3.1 billion, not $2.3 billion as previously reported by the company, and that the company is liable for $2.5 billion; and (b) an investigation, as reported in The Wall Street Journal, has uncovered a vast network of business relationships between Adelphia and the Rigas family which is exposing "one of the largest cases of inside dealings ever seen at a public company," and which has revealed a complex cash-management system between Adelphia and the Rigas family which funded personal loans and various transactions by the family. For example, Adelphia guaranteed loans to help fund a professional hockey team, build a PGA-quality golf course, and buy timber rights on a parcel of land in Coudersport, PA without disclosing the funding to Adelphia's Board. In its Buffalo cable systems, Adelphia ran free advertisements for Rigas-owned businesses and an independent film venture produced by a member of the Rigas family. Also according to The Wall Street Journal, investigators are looking into payments made into a New York-based venture run by Peter Venetis, son-in-law of President, CEO and Chairman John J. Rigas. Adelphia stock resumed trading on the Nasdaq market May 23, 2002, as its shares fell 54% in heavy trading to $2.62 from $5.69.
Plaintiff seeks to recover damages suffered by class members and is represented by the law firm of Spector, Roseman & Kodroff, P.C. If you bought the securities of Adelphia between April 2, 2001, and April 1, 2002 you may, no later than June 3, 2002, request that the Court appoint you as lead plaintiff. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Adelphia Communications Corp. securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/recentsecuritiesfilings.asp. To discuss this action or if you have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.