BALA CYNWYD, Pa., April 2, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all purchasers of the common stock of Adelphia Communications Corporation ("Adelphia" or the "Company") (Nasdaq:ADLAC) from April 2, 2001 through April 1, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Adelphia Communications Corporation and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that, throughout the Class Period, Adelphia failed to disclose billions of dollars of off-balance sheet debt. As alleged in the complaint, unbeknownst to investors, Adelphia guaranteed credit facilities for certain closely held partnerships, which are controlled by the Rigas Family (the Company's controlling shareholder), and which used the money, in substantial part, to purchase securities from Adelphia. Defendants first disclosed the existence of the off-balance sheet debt during an earnings conference call on March 27, 2002. Then, on April 1, 2002, Adelphia announced that it was requesting an extension to file its Annual Report on Form 10-K with the SEC. The Company reported that the extension was being sought to allow the Company and its outside auditors additional time to review certain accounting matters relating to co-borrowing credit facilities which Adelphia is a party. In response to these negative announcements, the price of Adelphia common stock dropped from $20.39 per share on March 26, 2002, to $13.12 per share on April 1, 2002. The price of other Adelphia debt securities also materially declined.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which has significant experience and expertise prosecuting class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than June 3, 2002, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.