Applies to -- COVD
Zwerling, Schachter & Zwerling, LLP Files Class Action Against Covad Communications Group, Inc. Alleging Violations of Federal Securities Laws
Zwerling, Schachter & Zwerling, LLP Files Class Action Against Covad
Communications Group, Inc. Alleging Violations of Federal Securities
Laws
NEW YORK, Nov 29, 2000 /PRNewswire via COMTEX/ -- Zwerling, Schachter &
Zwerling, LLP ("Zwerling, Schachter") announced today that a class action
lawsuit was filed in the United States District Court for the Northern District
of California, on behalf of all persons who purchased or otherwise acquired
Covad Communications Group, Inc. ("Covad" or the "Company") (Nasdaq: COVD)
securities -- including common stock and convertible senior notes -- between
September 7, 2000 and November 14, 2000, inclusive (the "Class Period").
Included in the plaintiff class are persons who acquired Covad stock in
connection with Covad's acquisition of BlueStar Communications Group
("BlueStar") in September, 2000.
The complaint charges Covad and certain of its directors and officers with
violations of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder. The complaint alleges that during the Class Period, the defendants
engaged in a scheme to mislead the public about Covad's operating condition and
performance by issuing materially false statements regarding the revenues that
the Company was deriving from broadband and other Internet-related products and
services, including statements that the Company would achieve revenues of over
$80 million in the third quarter of 2000. As a result of these representations
Covad's securities prices were artificially inflated during the Class Period.
Defendants took advantage of the inflation in Covad's stock price during the
Class Period to raise $500 million in a convertible note offering and to
complete the $140 million stock-for-stock acquisition of BlueStar. On October
17, 2000, after the close of the markets, Covad announced a larger-than-expected
loss of $189.9 million, or $1.22 a share, for the third quarter of 2000, on
revenues of $66.7 million, and admitted that it was having trouble collecting
its purported revenues. When trading resumed the following day, Covad's stock
price plunged more than 50%, to below $3-3/4 a share. On November 14, 2000,
Covad announced additional financial problems and further reduced its third
quarter revenue figures.
If you are a member of the Class described above, you have several options with
respect to your participation in this Action.
First, you may choose to do nothing, in which case, if the Court certifies the
Class described above, you should still be able to participate in the Action as
a member of the Class, and share in any recovery obtained in the Action on
behalf of the Class.
Second, you may apply, through any counsel of your choice, to serve as Lead
Plaintiff on behalf of the Class. The Lead Plaintiff is responsible for
overseeing the prosecution of the Action and ensuring that the interests of the
Class are protected. The Lead Plaintiff's duties include, among other things:
(i) selecting and retaining counsel to represent the Class; (ii) meeting and
consulting with counsel to supervise the conduct of the litigation; and (iii)
appearing at depositions and/or at trial, as necessary and ordered by the Court.
The Lead Plaintiff has the overall responsibility to oversee the action and
achieve the best result possible, whether through settlement or trial to a
judgment.
Third, you may apply to be appointed Lead Plaintiff through Zwerling, Schachter
by contacting the individuals set forth below. Zwerling, Schachter specializes
in prosecuting class actions nationwide on behalf of investors. The firm
currently plays a leading role in numerous major securities and complex
commercial litigations pending in federal and state courts and has offices in
New York City, Seattle, Washington and Westbury, New York. The firm has been
recognized by courts throughout the country as highly experienced and skilled in
complex litigation, particularly with respect to federal securities, class
actions and shareholder litigation.
If you wish to discuss this action or have any questions, please contact
Zwerling, Schachter by telephone at 800-263-7337 (Ms. Jayne C. Nykolyn) or
800-721-3900 (Richard A. Speirs); via e-mail at zlaw96@ix.netcom.com; or by
visiting Zwerling, Schachter's website at zsz.com).
All e-mail correspondence should make reference to Covad Corporation.
SOURCE Zwerling, Schachter & Zwerling, LLP
CONTACT: Jayne C. Nykolyn, 800-263-7337, or Richard A. Speirs,
800-721-3900, both of Zwerling, Schachter & Zwerling, LLP,
zlaw96@ix.netcom.com
URL: zsz.com
prnewswire.com
(C) 2000 PR Newswire. All rights reserved.
-0-
KEYWORD: California
INDUSTRY KEYWORD: TLS
MLM
SUBJECT CODE: LAW
STOCK SYMBOLS: [(covd)]
Applies to -- COVD
Schoengold & Sporn, P.C. Announces Filing of Securities Class Action Suit Against Covad Communications Group, Inc.
Schoengold & Sporn, P.C. Announces Filing of Securities Class Action
Suit Against Covad Communications Group, Inc.
NEW YORK, Nov 29, 2000 /PRNewswire via COMTEX/ -- Schoengold & Sporn, P.C.
announced today that a securities class action lawsuit was filed in the United
States District Court for the Northern District of California against Covad
Communications Group, Inc. ("Covad" or the "Company") (Nasdaq: COVD) and certain
of its key officers on behalf of persons who acquired the common stock of Covad
("Covad") between September 7, 2000 and November 14, 2000 ("the "Class Period").
The securities class action complaint charges the defendants with violations of
the federal securities laws (Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934 and Rule 10b-5 promulgated thereunder), by, among other things,
omitting material information and disseminating materially false and misleading
statements concerning the Covad's business and finances contained in
announcements to the investing public and in filings with the Securities and
Exchange Commission ("SEC"). Specifically, Covad failed to disclose that 14
Internet Service Providers ("ISPs") were delinquent in payment, necessitating a
restatement by the Company of its finances for its third quarter 2000.
Plaintiff seeks to recover damages on behalf of class members, and is
represented by the law firm of Schoengold & Sporn, P.C., 19 Fulton Street, Suite
406, New York, New York 10038, Tel. (212) 964-0046, Toll Free (800) 232-8092,
Fax: 212-267-8137, E-Mail: SHAREHOLDERRELATIONS@SPORNLAW.COM,
WWW.SCHOENGOLDANDSPORN.COM, who has extensive experience and expertise
prosecuting class actions on behalf of investors and shareholders.
Schoengold & Sporn, P.C. began specializing in shareholder class and derivative
securities litigation in 1968, and courts have long noted the firm's experience
and ability in complex securities litigation. The firm has been a lead counsel,
co-lead counsel, or member of an Executive Committee in many complex securities
class actions, including the highly publicized Wedtech securities case (member
of the Executive Committee). The favorable $77.5 million Wedtech settlement was
reported in the Wall Street Journal on February 10, 1992, page B6, as a:
"$77.5 million settlement ... reached in a securities fraud case stemming
from the Wedtech scandal ... The settlement with 29 defendants ... is
believed to be one of the largest ever in a civil securities fraud case
... 'This is a global settlement,' said Samuel Sporn, a plaintiffs'
attorney at the New York law firm Schoengold & Sporn. Mr. Sporn said the
settlement represents almost half of the more than $160 million in stocks
and bonds that Wedtech sold to the public between 1983 and 1986."
If you are a member of the class described above, you may seek to join in the
above class action on or no later than December 19, 2000, by moving the Court to
serve as lead plaintiff. This is not a prerequisite to participation as a class
member.
If you would like to further discuss your rights or receive an information
packet, you may call collect or otherwise contact the undersigned, who will be
pleased to assist:
CONTACT: Schoengold & Sporn, P.C.
19 Fulton Street, Suite 406
New York, New York 10038
Tel: (212) 964-0046
Toll Free: (800) 232-8092
Fax: (212) 267-8137
E-Mail: SHAREHOLDERRELATIONS@SPORNLAW.COM
SOURCE Schoengold & Sporn, P.C.
CONTACT: Schoengold & Sporn, P.C., 212-964-0046 or 800-232-8092,
fax: 212-267-8137, e-mail: shareholderrelations@spornlaw.com
URL: schoengoldandsporn.com
prnewswire.com
(C) 2000 PR Newswire. All rights reserved.
-0-
KEYWORD: New York
California
INDUSTRY KEYWORD: TLS
MLM
SUBJECT CODE: LAW
STOCK SYMBOLS: [(covd)] |
