Former U.S. Congressman Files Suit Against Alcatel
September 29, 1998
NEW YORK--(BUSINESS WIRE)--Sept. 29, 1998--Bill Green, a former United States
Congressman from New York and a trustee of certain family trusts, has filed a class action in the
United States District Court for the Southern District of New York against Alcatel Alsthom (NYSE:
ALA), its CEO Serge Tchuruk, and its directors for violations of the federal securities laws in
connection with Alcatel's recent $4.4 billion merger with DSC Communications Inc., as announced
by Lowey Dannenberg Bemporad & Selinger, P.C.
Green 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.
After the merger was approved on August 27, 1998 and closed on September 4, 1998, Alcatel
stunned investors when it announced on September 17, 1998 that its revenues and operating profits
for the six months ended June 30, 1998 had declined 29% and 15% respectively from the prior year.
The price of Alcatel's ADSs promptly plunged 39% to $19-1/8 per share. According to the
complaint, 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 one DSC share to .815 Alcatel ADS.
Green has selected the highly regarded law firm of Lowey Dannenberg Bemporad & Selinger, P.C.
of White Plains, New York to represent plaintiffs and the Class.
Former DSC stockholders who received Alcatel ADSs in the merger may obtain a copy of the Class
Action Complaint and discuss the action by contacting:
Stephen Lowey, Esq. or
Richard W. Cohen, Esq. or
Jeanne D'Esposito, Esq.
LOWEY DANNENBERG BEMPORAD & SELINGER, P.C.
Telephone (toll-free): 877/777-3581
Fax: 914/997-0035
E-mail: ldbs@westnet.com |
