DSC Communications Corp. Shareholder Sues Alcatel for Securities Fraud Announces Berman DeValerio &
Pease LLP
PR Newswire, Wednesday, September 23, 1998 at 11:56
BOSTON, Mass., Sept. 23 /PRNewswire/ -- Alcatel SA has been sued for
violating the federal securities laws in a class action suit filed in the
United States District Court for the Northern District of Texas on behalf of
shareholders of DSC Communications Corp (NASDAQ:DIGI) who exchanged their
shares of DSC for shares of Alcatel pursuant to a merger dated September 8,
1998.
The action charges that Alcatel omitted from disclosure in the
registration statement and prospectus it issued in connection with the DSC
merger the material fact that it would not meet earnings expectations for
1998. Alcatel has admitted that prior to the close of the merger, it knew it
would not meet earnings numbers for the year but withheld this material
information from DSC shareholders so the merger could be effectuated without
DSC shareholders learning the true information. On September 17, 1998 Alcatel
revealed that on September 8, 1998, the day the DSC merger closed, it learned
that "orders we previously thought were just to be delayed were turning out to
be canceled." Alcatel waited until September 17, 1998 to disclose this
information and its common stock price plunged 38.5% on this news, falling by
$12 1/16 to close at $19 1/4 on September 17, 1998. Alcatel's stock price
closed at $37 per share on September 8, 1998, the day of the merger. Claims
are asserted on behalf of DSC shareholders for violations of Sections 11,
12(a)(2) and 15 of the Securities Act of 1933.
If you exchanged your DSC common stock for Alcatel common stock you may
wish to contact Michael T. Matraia, Esq. or Jeffrey C. Block, Esq. of Berman,
DeValerio & Pease LLP at 800-516-9926 regarding your rights and interests in
this matter. You can write to us at One Liberty Square, Boston, MA 02109, or
send us an E-Mail at bdplaw@bermanesq.com. You can also visit us at our
website at www.bermanesq.com.
In addition, under the federal securities laws you may, but not later than
sixty days from today, move the court to serve as lead plaintiff of the Class,
if you so choose. To serve as lead plaintiff, however, you must meet certain
legal requirements. You may contact the attorneys at Berman DeValerio & Pease
LLP to discuss your rights regarding the appointment of lead plaintiff.
Berman, DeValerio & Pease LLP, with offices in both Boston and San
Francisco has substantial experience in prosecuting class actions on behalf of
defrauded investors and consumers. It has successfully litigated numerous
actions charging companies with issuing materially false and misleading
statements and has been singled out for its excellence by many courts.
SOURCE Berman DeValerio & Pease LLP
-0- 09/23/98
/CONTACT: Michael T. Matraia, Esq. or Jeffrey C. Block, Esq. of Berman
DeValerio & Pease LLP, 800-516-9926/
/Web site: bermanesq.com
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