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Technology Stocks : Advanced Fibre (AFCI) ** IPO -- Ignore unavailable to you. Want to Upgrade?

To: Paul Shread who wrote (598)	7/2/1998 5:05:00 PM
From: Beltropolis Boy	Respond to of 3299

like white on rice. Class Action Suit Filed Against Advanced Fibre Communications Inc. and Its Officers and Directors Alleging Misrepresentations and Insider Trading July 2, 1998 04:38 PM SAN DIEGO--(BUSINESS WIRE)--July 2, 1998--A class action will be commenced in the United States District Court for the Northern District of California on Thursday, July 2, 1998 or Monday, July 6, 1998 on behalf of purchasers of Advanced Fibre Communications, Inc. ("Advanced Fibre") (AFCI) common stock during the period June 3, 1997 to June 30, 1998. The complaint will charge Advanced Fibre and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint will allege that defendants' false and misleading statements about strong sales of Advanced Fibre's telecommunications products, continuing strong sales to one of its largest customers (GTE), its strong and growing sales in China and its success in penetrating Bell Atlantic, Bell South, U.S. West, Ameritech and SBC (the "Baby Bells") and the strong continuing growth in demand for its products over the next several years which would result in 35%-50% earnings per share ("EPS") growth for Advanced Fibre during 98-99, artificially inflated Advanced Fibre stock to a Class Period high of $44-3/4 in April 1998. Advanced Fibre's insiders sold 3.6+ million shares of their Advanced Fibre stock at as high as $44 for $128 million in proceeds. On June 30, 1998, just weeks after Advanced Fibre's stock hit its all-time high, Advanced Fibre revealed that, due to weak sales in China, delays in delivering a new product to Chinese customers, a lack of Asian distributors, virtually non-existent sales to GTE and slower-than-anticipated sales to the Baby Bells, its second quarter 1998 results were going to be much worse than earlier forecast and that its 1998 EPS would likely decline from 1997 levels. Advanced Fibre's stock fell from $40-1/4 to $16-3/4 on July 1, 1998, a 58% one day decline on volume of 31 million shares, by far the largest one-day price decline and the largest one-day volume in Advanced Fibre's history. Plaintiffs will seek to recover damages on behalf of all purchasers of Advanced Fibre common stock during the Class Period (the "Class"). They are represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 20 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's Web site at milberg.com. If you are a member of the Class described above, you may, no later than 60 days from the date the action is filed, 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 any questions concerning this notice or your rights or interests, contact plaintiffs' counsel, William Lerach, Alan Schulman or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@mwbhl.com.