PHILADELPHIA, Dec. 1, 2000 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of Mississippi against defendants Worldcom Corporation ("Worldcom or the "Company") (Nasdaq:WCOM), Bernard J. Ebbers, President and Chief Executive Officer, and Scott D. Sullivan, Chief Financial Officer, on behalf of purchasers of the stock of Worldcom between April 13, 2000 and November 1, 2000, inclusive (the "Class Period").
The action seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Plaintiff alleges that defendants knowingly or recklessly disseminated materially false and misleading statements that misrepresented Worldcom's business, prospects, and operations. Specifically, the complaint alleges that defendants misrepresented the Company's financial statements due to their failure to timely write-down $405 million in receivables representing accounts which defendants knew were uncollectible, failed to disclose that the Company was experiencing declining growth in its Internet services and, misrepresented that the Company could "grow revenues and profitability" despite intense pricing pressure. During this time when the price of Worldcom stock was artificially inflated, defendant Ebbers sold 3 million shares of Worldcom stock for over $70 million, defendant Sullivan sold 475,000 shares for nearly $10 million, and John Sidgmore, a director of the Company, sold 314,239 shares for over $12 million, for a grand total of over $90 million at prices more than double Worldcom's $18 per share trading price on November 6, 2000.
If you purchased the stock of Worldcom between April 13, 2000 and November 1, 2000, you may, no later than January 6, 2001, move the court to serve as lead plaintiff of the class, if you choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. 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. You may retain Spector, Roseman & Kodroff, P.C., or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action or 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@spectorandroseman.com. For more detailed information about the firm please visit its website at http://www.spectorandroseman.com.
SPECTOR, ROSEMAN & KODROFF, P.C., located in Philadelphia and San Diego, 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. 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.