NEW YORK, Sept. 4, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") announces that a class action has been commenced in the United States District Court for the Northern District of Georgia on behalf all persons who purchased or acquired BellSouth Corp. (NYSE:BLS) ("BellSouth" or the "Company") securities between the period of January 22, 2001 and July 19, 2002, inclusive (the Class Period) against defendants BellSouth and certain of its officers and directors.
The complaint charges BellSouth 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 defendants reported quarter after quarter of "record" financial results and financial growth despite a rapidly deteriorating market for telecommunications companies. However, unbeknownst to the investing public, (i) 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; (ii) Generally Accepted Accounting Principles were violated because the transactions with "phantom customers" were not complete and there was not an "appropriate provision for uncollectible accounts."
On July 22, 2002, defendants revealed that BellSouth's earnings had dropped by 67% for the second quarter of 2002, missing Wall Street estimates. 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. In response to the Company's July 22, 2002 revelation, BellSouth stock dropped by more than 18% to $22 per share. 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 are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than October 14, 2002, move the Court to serve as a lead plaintiff. 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." The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whhf.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Ramon Pinon IV, Wechsler Harwood Shareholder Relations Department: rpinoniv@whhf.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca