Schubert & Reed LLP Issues Notice of Pendency of Class Action Against Alcatel Alsthom
PR Newswire, Wednesday, September 30, 1998 at 09:15
SAN FRANCISCO, Sept. 30 /PRNewswire/ -- Pursuant to Section 21D(a)(3)(i)
of the Securities Exchange Act of 1934, notice is given that on
September 30, 1998, Schubert & Reed LLP filed a class action in the
United States District Court for the Southern District of New York on behalf
of a class of Alcatel Alsthom (Symbol: ALA) shareholders who received Alcatel
American Depository Shares (ADSs) in exchange for shares of DSC
Communications, Inc. (Symbol: DIGI) in connection with Alcatel's recent
$4.4 billion merger with DSC. The suit names as defendants Alcatel, its CEO
Serge Tchuruk and Alcatel's directors for violations of the federal securities
laws.
The complaint alleges that the Class, former DSC stockholders, were
wrongfully induced to approve the merger and to acquire Alcatel ADSs in
exchange for their DSC shares at a disproportionately low exchange ratio, by
reason of a materially misleading prospectus and proxy statement which failed
to disclose a material decline in Alcatel's operating results for the first
six months of 1998.
On September 17, 1998, nine days after Alcatel acquired DSC, Alcatel
announced that its financial results would miss analysts' earnings projections
by $260 million. On news of the truth about Alcatel, its ADSs fell from a
close of 33-1/32 on September 16, 1998, to 19.25 on September 17, 1998, losing
38.5% of their value in a single day. The complaint alleges that, had the
market price of Alcatel ADSs reflected these results prior to the merger, the
merger would not have been approved at the ratio of .815 Alcatel ADS to each
DSC share.
Plaintiff seeks to recover damages on behalf of class members and is
represented by Schubert & Reed LLP, of San Francisco, CA and the Law Offices
of Mark McNair, of Washington, D.C., which have significant experience and
expertise prosecuting class actions on behalf of investors and shareholders.
If you are a member of the class described above, you may, not later than
November 17, 1998, move the Court to serve as a lead plaintiff of the class.
If you are a member of the class and desire more information about the case,
or your rights, please contact: Robert C. Schubert or Juden Justice Reed,
Schubert & Reed LLP at 415-788-4220, mail@schubert-reed.com, or
schubert-reed.com. Mark McNair may be contacted at 202-736-2191.
SOURCE Schubert & Reed LLP
-0- 09/30/98
/CONTACT: Robert C. Schubert or Juden Justice Reed, both of Schubert
& Reed LLP, 415-788-4220, or mail@schubert-reed.com/
/Web site: schubert-reed.com |
