ATLANTA, Sept. 26, 2002 (PRIMEZONE) -- Notice is hereby given that Chitwood & Harley has filed several class action lawsuits in the United States District Court for the Northern District of Georgia (Civil Action No. 1:02-CV-2142-WBH, for example) on behalf of all persons who purchased or otherwise acquired the securities of BellSouth Corporation ("BellSouth" or the "Company") (NYSE:BLS) between January 22, 2001 and July 19, 2002, inclusive (the "Class Period").
The complaints charge BellSouth and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. The complaints allege that during the Class Period, defendants misled their investors by issuing false and misleading statements and failing to disclose material facts about the Company's business. During the Class Period, BellSouth reported quarter after quarter of "record" financial results and financial growth despite a rapidly deteriorating market for telecommunications companies. As the Company was ultimately forced to reveal, however, the financial prospects for BellSouth were far from the Company's representations. At the end of the Class Period, for example, BellSouth had to take charges to earnings totaling over $418 million. At least $163 million of the massive charges, BellSouth admitted, resulted from unbilled receivable balances which were overstated.
The complaints are also based on BellSouth's representations during the Class Period that it reviewed its account receivables on a monthly basis. These representations were ultimately belied by BellSouth's admission that the overstatement of unbilled accounts had occurred over an extended period of time. In addition, the complaints charge BellSouth with delaying the disclosure that a competitive local exchange carrier ("CLEC") had stopped paying its bills and that the Company had ceased recognizing revenues for wholesale services provided to this customer, despite knowing these developments would materially and adversely affect the Company. Unable to conceal the decline in its business any longer, on July 22, 2002, the Company announced that its earnings had dropped by an astonishing 67% for the second quarter of 2002. In response to the Company's devastating July 22, 2002 news, BellSouth stock plummeted 18% to $22 per share on enormous trading volume of over 18 million shares, four times its daily average trading volume.
If you purchased BellSouth securities during the Class Period, you may join in the actions and/or move for appointment as lead plaintiff. Any member of the proposed class who wishes to move the Court to serve as lead plaintiff must do so no later than October 15, 2002. (Previous releases have listed this deadline as October 14, 2002, but the Court will be closed that day for Columbus Day.) In order to serve as lead plaintiff, you must meet certain legal requirements.
Plaintiff is represented by Chitwood & Harley, a law firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States in both federal and state courts and has been instrumental in recovering billions of dollars on behalf of its clients.
If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Nikole Davenport at 1-888-873-3999 (toll-free) or by e-mail at nmd@classlaw.com, CHITWOOD & HARLEY, 2900 Promenade II, 1230 Peachtree Street, N.E., Atlanta, Georgia 30309. For more information about Chitwood & Harley, please visit our website at www.classlaw.com.