Law Offices of Lionel Z. Glancy Commences Class Action Lawsuit Against Xcelera.com, Inc.
LOS ANGELES--(BUSINESS WIRE)--Aug. 11, 2000--Notice is hereby
given that a class action lawsuit has been commenced in the United
States District Court for the District of Connecticut asserting claims
on behalf of all purchasers of the common stock of Xcelera.com, Inc.,
(AMEX:XLA.A) between April 1, 1999 and July 31, 2000 (the "Class
Period").
The complaint alleges that in violation of Sections 10(b) and
20(a) of the Securities Exchange Act of 1934, Xcelera, an Internet
holding company, and certain of its senior executives, undertook to
drive up the price of Xcelera's stock in a scheme to sell part of the
Company and dump $200 million of artificially inflated stock on the
unsuspecting public. Specifically, in March 2000, when the Company's
stock price had been artificially run up by 80,000%, defendants struck
a deal to sell a portion of its principal subsidiary, Mirror Image,
without disclosing that as a result of the sale, Xcelera's U.S.
investors would be subject to special taxing provisions transferring
the tax burden on the gain directly to Xcelera's shareholders at a
rate reported to be between $2 and $7 per share. Also undisclosed
during the Class Period were certain disputes related to Xcelera's
original acquisition of Mirror Image, resolution of which may result
in Xcelera issuing 45 million new shares in the Company, thereby
diluting existing shareholders by almost 45%.
The complaint further alleges that after defendants accomplished
their goal of selling part of the Company at an astronomically
inflated value, defendants ceased supporting the artificially inflated
price of the stock, and Xcelera's stock price plummeted from a 52-week
high of $112.50 in March 2000 to approximately $11.75 today. During
the Class Period, certain defendants sold more than $200 million in
Xcelera stock at artificially inflated prices to the unsuspecting
public.
The lawsuit seeks to recover losses suffered by investors who
purchased Xcelera stock during the ClassPeriod, excluding the
defendants and their affiliates. Plaintiff is represented by the Law
Offices of Lionel Z. Glancy, which specializes in complex litigation,
including securities class actions. The Law Offices of Lionel Z.
Glancy 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.
If you are a member of the class described above, you may, not
later than 60 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, contact Tracy L. Thrower, Esq.,
Law Offices of Lionel Z. Glancy, 1801 Avenue of the Stars, Suite 311,
Los Angeles, CA 90067, by telephone at 310/201-9150 or 888/773-9224
(toll-free), or send a fax to 310/201-9160, or by e-mail to
info@glancylaw.com.
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CONTACT: Law Offices of Lionel Z. Glancy, Los Angeles
Lionel Z. Glancy, 310/201-9150
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: LEGAL/LAW CLASS ACTION LAWSUITS |
