ATLANTA, April 3, 2003 (PRIMEZONE) -- Chitwood & Harley announces that it has filed a class action lawsuit in the United States District Court for the District of Minnesota, on behalf of all investors who purchased securities of ADC Telecommunications, Inc. ("ADC" or the "Company") (Nasdaq:ADCT) between November 28, 2000 and March 28, 2001, inclusive (the "Class Period"). The suit is brought against ADC Telecommunications and certain of its officers. A copy of the complaint is available on our website, www.classlaw.com. The deadline to file lead plaintiff papers, for those class members wishing to serve in this capacity, is May 5, 2003.
The Complaint charges ADC with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements concerning ADC's financial prospects caused ADC's stock price to become artificially inflated, inflicting damages on investors. ADC is a supplier of broadband-network equipment, software and services that enable communications service providers to deliver high-speed Internet, data, and voice services across the so-called "last mile" connecting providers' offices to end-users homes and businesses.
The Complaint alleges that during the Class Period Defendants repeatedly represented that ADC would continue to achieve significant growth and would not be affected by widely known reductions in capital spending on the telecommunications infrastructure by communications service providers.
On March 28, 2001, defendants shocked the market by announcing that the Company would lower its fiscal 2001 earnings guidance, which defendants had issued only four weeks earlier, cut as many as 4,000 jobs and close facilities in the face of canceled orders and declining revenues caused by the reductions in spending on equipment by telecommunications service providers. The market reacted swiftly to this news, pushing the price of ADC Telecommunications stock down over 22% in extremely heavy trading volume.
There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Lauren Antonino or Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website, www.classlaw.com, by clicking on ADC Telecommunications.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca