Alcatel SA Sued For Securities Fraud By DSC Communications Corp. Shareholder Announces Berman Devalerio & Pease LLP
BOSTON, Oct. 27 /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 - news) 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. Altcatel'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 Section 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 bermanesq.com.
In addition, under the federal securities laws you may, but not later than sixty days from September 18, 1998, 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.
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