Kirby McInerney & Squire, LLP Commences Class Action Lawsuit Against Xcelera.com, Inc.
Friday August 11, 7:29 pm Eastern Time
Press Release
NEW YORK--(BUSINESS WIRE)--Aug. 11, 2000--The following is an announcement by the law firm of Kirby McInerney & Squire, LLP:
Please take notice that a class action lawsuit has been commenced in the United States District Court for the District of Connecticut on behalf of all purchasers of Xcelera.com, Inc. (AMEX: XLA - news) common stock between April 1, 1999 and July 31, 2000 (the ``Class Period'').
The complaint alleges that, during the Class Period, Xcelera and certain of its senior executives - in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 - made material misrepresentations of facts and material omissions of facts, which misrepresentations and omissions were responsible for a dramatic inflation of the price of Xcelera's common stock. As Xcelera's stock, propelled by a stream of positive and sometimes misleading press releases principally regarding its Mirror Image subsidiary, was appreciating by approximately 60,000% to reach a split-adjusted peak of $112.50 per share in March 2000, the complaint alleges that company insiders began to sell their shares and continued to do so until they had pocketed well over $200 million. After March 2000, Xcelera's stock declined in value as skeptics began to refute the company's misleading announcements. On July 31, 2000, the company admitted to investors for the first time that: (i) as a result of transactions entered into prior to April 1, 1999, current shareholders were facing a previously-undisclosed potential dilution of 32-45%; and that (ii) as a result of a transaction announced on March 22, 2000 with Exodus Communications, current shareholders could face a previously-undisclosed tax of between $2 and $7 per share. (Company insiders, the day after the March 22 announcement, sold Xcelera stock worth over $45 million dollars, and sold another $45 million within a week). Xcelera's stock, which by the time of the July 31st surprise had lost approximately 85% of its value to fall to $15.25 per share, promptly lost over 25% of the value remaining to them in the days that followed.
The lawsuit seeks to recover losses suffered by investors who purchased Xcelera stock during the class period, excluding the defendants and their affiliates. Plaintiff is represented by the law firm of Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. Kirby McInerney & Squire has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in published decisions.
If you are a member of the class described above, you may, not later than sixty days from August 11, 2000 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, as set out pursuant to the Private Securities Litigation Reform Act of 1995. If you wish to discuss this action, or have any questions concerning this notice or your rights, please contact:
Ira Press, Esq.
Orie Braun
KIRBY McINERNEY & SQUIRE, LLP
830 Third Avenue, 10th Floor
New York, New York 10022
Telephone: (212) 317-2300
or Toll Free (888) 529-4787
E-Mail: obraun@kmslaw.com
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Contact:
Kirby McInerney & Squire, LLP, New York
Ira Press, Esq. or Orie Braun
212/317-2300 or 888/529-4787
obraun@kmslaw.com |
