NEW YORK, March 13, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action on behalf of purchasers of the securities of Qwest Communications International, Inc. ("Qwest" or the "Company") (NYSE:Q) during the period from April 19, 2000 through February 13, 2002, inclusive (the "Class Period"). The case was filed in the United States District Court for the District of Colorado. Named as defendants are Qwest and certain of its senior officers.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading revenue and earnings results for Qwest during the Class Period. These results were inflated through accounting manipulations in violation of Generally Accepted Accounting Principles ("GAAP"). The Complaint alleges that as a result, the price of Qwest's stock was artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages. Before the disclosure of the true facts, Company officials allegedly profited by over $240 million in insider stock sales with knowledge of the Company's actual financial condition.
As alleged in the Complaint, Qwest, a broadband Internet telecommunications company, essentially entered into swap contracts and improperly recognized revenues upfront in one lump sum. For example, it entered into contracts to "sell" equipment, while simultaneously agreeing to buy from the same purchasers Internet services using the equipment it had just "sold." As alleged, adding to the suspect nature of these transactions was the fact that Qwest was a specialist in the very Internet services that it was agreeing to purchase. Plaintiff charges that Qwest's booking of revenues upfront in one lump sum violated GAAP and was contrary to industry practice.
The public began to have some inkling about the inflation of Qwest's reported revenues when on February 13, 2002, The Wall Street Journal reported that during 2000 and 2001 the Company may have improperly recognized revenues from these types of transactions. On March 11, 2002, Qwest disclosed that the SEC had requested the Company to produce documents in connection with its accounting policies and procedures, as well as its revenue recognition.
Following news reports of possible GAAP violations, Qwest's common stock fell 6.7% to close at $8.59 on February 13, 2002, down $0.62 from its close of $9.21 on the previous day. During the Class Period, Qwest common stock traded as high as $64.50 on March 3, 2000.
If you purchased the securities of Qwest during the Class Period, you have until April 22, 2002, to ask the Court to appoint you as one of the lead plaintiffs for the Class. To serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca