ATLANTA, Oct. 13, 2003 (PRIMEZONE) -- The Law Firm of Holzer Holzer & Cannon, LLC announced today that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of: (i) all purchasers of the AmericanDepositary Receipts ("ADRs") of Alstom SA ("Alstom" or the "Company") (NYSE:ALS) between May 26, 1999 and June 29, 2003, inclusive (the "Class Period") who purchased such shares on the New York Stock Exchange; and (ii) all purchasers of the securities of Alstom between May 26, 1999 and June 29, 2003, inclusive (the "Class Period"), who live in the United States and who were damaged thereby. A copy of the complaint filed in this action is available from the Court, or can be obtained by e-mailing mfistel@holzerlaw.com.
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Throughout the Class Period, as alleged in the complaint, defendants issued numerous positive statements concerning the growth and financial performance of its transportation subsidiary. The complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (a) that the Company had failed to recognize costs incurred in a rolling-stock supply railcar contract at its transportation unit in anticipation of shifting the costs to other contracts; (b) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (c) that as a result of the foregoing, the value of the Company's losses was materially understated at all relevant times and the value of the Company's margins was materially overstated at all relevant times. The complaint alleges that on June 30, 2003, before the U.S. market opened for trading, Alstom announced that it is "conducting an internal review assisted by external accountants and lawyers following receipt of letters earlier this month alleging accounting improprieties on a railcar contract being executed at the Hornell, New York facility of ALSTOM Transportation Inc. (ATI), a US subsidiary of the Company." As part of the review, the complaint alleges, the Company "identified that losses have been significantly understated in ATI's accounts, in substantial part due to accounting improprieties by the understatement of actual costs incurred, including by the non-recognition of costs incurred in anticipation of shifting them to other contracts, and by the understatement of forecast costs to completion." As a result, the Company announced that it would record an additional net after tax charge of 51 million euros ($58 million) for the year ended March 31, 2003.
If you bought Alstom publicly traded securities between May 26, 1999 and June 29, 2003, inclusive (as defined above), and you wish to serve as lead plaintiff, you must move the Court no later than October 28, 2003. Any member of the purported class may move the Court to serve as lead plaintiff through Holzer Holzer & Cannon, LLC or other counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss this action, or if you have any questions concerning this Notice or your rights as a potential class member, you may call or write the attorneys below.
Michael I. Fistel, Jr. Holzer Holzer & Cannon, LLC 1117 Perimeter Center West Suite E-107 Atlanta, Georgia 30338 (888) 508-6832 mfistel@holzerlaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca