NEW YORK, June 28, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Eastern District of Virginia on behalf of all purchasers of ECI Telecom, Ltd. ("ECI Telecom" or the "Company") (Nasdaq:ECIL) common stock between May 2, 2000, and Feb. 14, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's Website at www.faruqilaw.com.
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of false and misleading press releases concerning ECI Telecom's financial condition and business prospects. Specifically, throughout the Class Period, the Company repeatedly issued press releases portraying ECI Telecom as a growing company that was experiencing, and would continue to experience, increased demand and revenue for its products. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period, reaching a high of approximately $39 per share. On Jan. 22, 2001, however, ECI Telecom announced that its fourth quarter loss would be wider than it had previously warned in mid-December, and that it would be forced to restate its financial statements for the first three quarters of fiscal and calendar 2000. Furthermore, on Feb. 14, 2001, the Company announced that the Company's previously announced restatement was expected to move $38 million in revenue from its 1999 financial statements to its financial statements for year 2000, and $61 million from its year 2000 financial statements to its year 2001 financials statements. In response to this latest announcement, ECI Telecom's shares dropped to approximately $13 per share, more than 66% off their Class Period high.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired ECI Telecom securities between May 2, 2000, and Feb. 14, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action, you can do so under the "Join Class Action" section of our Website at www.faruqilaw.com.
If you purchased ECI Telecom securities during the Class Period, you may, not later than Aug. 11, 2001, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail (Avozz@faruqilaw.com)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.