Morris and Morris Announces Class Action Against Alcatel Alsthom
BusinessWire, Friday, October 23, 1998 at 09:49
WILMINGTON, Del.--(BUSINESS WIRE)--Oct. 23, 1998--
The following is an announcement issued by Morris and Morris:
Notice is hereby given that a class action lawsuit was filed on
Oct. 14, 1998, on behalf of all persons who exchanged their DSC
Communications Inc. (NASDAQ:DIGI) stock for the American Depository
Receipts (the "ADRs") of Alcatel Alsthom (NYSE:AYA , "Alcatel" or the
"company") pursuant to a registration statement (the "Registration
Statement") and proxy statement/prospectus issued on or about July 28,
1998, in connection with the acquisition of DSC by Alcatel.
The complaint alleges that the Registration Statement was
materially false and misleading because defendants knew before
consummating the merger, but failed to disclose to the investing
public that Alcatel was suffering substantial declines in orders from
customers in its core European markets and that such declines would
significantly negatively affect its business through 1998.
On or about Sept. 17, 1998, the complaint alleges, only a few
days after the close of the merger, Alcatel stunned the investment
community by disclosing that due to its European customers' cuts in
business, it would fall far short of its operating income target.
This disclosure caused the price of Alcatel's ADRs to drop almost 50%.
Plaintiffs are represented by, among others, the law firm of
Morris and Morris. Morris and Morris, a law firm with a national
practice has taken a leading role in successfully prosecuting class
and representative litigation on behalf of defrauded investors in
numerous state and federal courts.
If you are a member of the Class described above, you may, no
later than 60 days from today, 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. If you
wish to discuss this action or have questions concerning this notice
or your rights or interests, please contact Patrick F. Morris of
Morris and Morris at (800) 296-0410 or via e-mail at
Morrisandmorris@compuserve.com
CONTACT: Morris and Morris, Wilmington
Patrick F. Morris
(800) 296-0410
e-mail: Morrisandmorris@compuserve.com
KEYWORD: DELAWARE
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