LITTLE ROCK, Ark., Sept. 30, 2002 (PRIMEZONE) -- The deadline for purchasers of BellSouth Corporation ("BellSouth" or the "Company") (NYSE:BLS) publicly traded securities to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching. If you purchased BellSouth securities between January 22, 2001 and July 19, 2002, inclusive (the "Class Period"), and you wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court for the Northern District of Georgia by October 14, 2002. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.cauleygeller.com/pr/bellsouth.pdf.
The complaint alleges that defendants violated the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by artificially inflating the price of BellSouth securities during the Class Period through a series of material misrepresentations. Specifically, the complaint alleges that defendants reported quarter after quarter of "record" financial results and growth despite a deteriorating market for telecommunications companies. The complaint alleges that the Company had been recognizing advertising and publishing revenues, purportedly in connection with the performance of services for customers who had not been billed ("phantom customers"), and that $163 million of this revenue was required to be reversed, thus violating Generally Accepted Accounting Principles.
The complaint alleges that on July 22, 2002, defendants revealed that BellSouth's earnings had dropped by 67% for the second quarter of 2002. The complaint alleges that the Company revealed that weak economic conditions in Central and Latin America had been, and were continuing to have a material, adverse impact on the Company's earnings and profitability. The complaint alleges that in response to the Company's July 22, 2002 revelation, BellSouth stock dropped by more than 18% to $22 per share. The complaint alleges that BellSouth executives, privy to the truth regarding BellSouth's financial condition, did not share in these losses, having sold millions of dollars of BellSouth stock.
If you bought BellSouth publicly traded securities between January 22, 2001 and July 19, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than October 14, 2002. If you are a member of this class, you can join this class action online at http://www.cauleygeller.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Cauley Geller has recovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in Boca Raton, Little Rock, and San Diego.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.cauleygeller.com.
Cauley Geller Bowman & Coates, LLP Client Relations Department: Jackie Addison, Sue Null or Heather Gann P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@cauleygeller.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca