Alcatel SA Sued For Concealing Poor Results From DSC Shareholders In A Shareholder Class Action Lawsuit
Filed By Berger & Montague P.C.
BusinessWire, Friday, September 25, 1998 at 16:22
PHILADELPHIA--(BUSINESS WIRE)--Sept. 25, 1998--Alcatel S.A.
(NYSE:ALA) ("Alcatel") and various of its senior officers and
directors violated securities laws by concealing poor operating
results, inflating its stock price at the time of its recent $4.4
billion merger with DSC Communications Inc. ("DSC"), according to a
class action lawsuit filed by Berger & Montague P.C. in the United
States District Court for the Northern District of Texas, Dallas
Division.
Plaintiff is represented by Berger & Montague, P.C., one of the
nation's foremost securities litigation firms.
According to the lawsuit, DSC stockholders were wrongfully
induced to exchange their DSC shares for Alcatel ADSs at an
artificially inflated rate. The lawsuit alleges that defendants' proxy
statement/prospectus failed to disclose that Alcatel's operating
results in the first half of 1998 were worse than the Company had led
investors to expect. These omissions prompted DSC shareholders to
approve the merger, which had terms granting them only .815 ADSs for
each DSC share they possessed.
According to the lawsuit Alcatel did not hint at the truth of the
operating results until Sept. 17, 1998, nine days after it announced
completion of the merger, when it dropped a bombshell: its revenues
and operating profits for the first half of 1998 declined 29% and 15%
respectively from the prior year. This stunning announcement caused an
immediate drop in Alcatel's ADS price from $31-5/16 to $19-1/8.
This notice to class members is being made pursuant to applicable
law. If you acquired Alcatel ADSs pursuant to its subsidiary's merger
with DSC, you may wish to join the action. You may move the court to
serve as a lead plaintiff on or before 60 days from Nov. 17, 1998.
If you would like to discuss this action, or if you have any
questions concerning this notice or your rights with respect to this
matter, you may contact:
Sherrie R. Savett, Esq. or Jill E. Sterbakov, Esq.
BERGER & MONTAGUE, P.C.
1622 Locust Street
Philadelphia, Pa., 19103
Telephone: 888/891-2289 or 215/875-3000
Fax: 215/875-5715
E-mail: INVESTORPROTECT@BM.NET
Berger & Montague invites you to visit its Web site on the
internet at home.bm.net
The law firm of Berger & Montague P.C., has extensive experience
in securities class action cases. The Berger firm has played lead
roles in major cases over the past 25 years which have resulted in
recoveries in the billions of dollars to investors. Courts have widely
recognized the Berger firm for the high quality of its legal
representation on behalf of defrauded investors.
CONTACT: Berger & Montague P.C.
Sherrie R. Savett, Esq.or
Jill E. Sterbakov, Esq.
888/891-2289 or 215/875-3000
fax: 215/875-5715
e-mail: INVESTORPROTECT@BM.NET
Web site: www.home.bm.net
KEYWORD: PENNSYLVANIA TEXAS
INDUSTRY KEYWORD: GOVERNMENT
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
Copyright 1998, Business Wire |
