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Technology Stocks : p-com (pcms) -- Ignore unavailable to you. Want to Upgrade?

To: Elmer Flugum who wrote (783)	9/24/1998 3:40:00 PM
From: JakeStraw	Read Replies (1) \| Respond to of 1461

Milberg Weiss Files Class Action Suit Against P-Com, Inc. and Its Officers and Directors Alleging Misrepresentations, False Financial Statements and Insider Trading SAN DIEGO, Sept. 24 /PRNewswire/ -- Milberg Weiss today announced that a class action has been commenced on behalf of purchasers of P-Com, Inc. (''P-Com'') (Nasdaq: PCMS - news) publicly traded securities between April 15, 1997 and September 11, 1998 (the ''Class Period''). If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please 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. The complaint charges P-Com and certain of its officers and directors with violations of the securities laws. P-Com supplies equipment and services for access to worldwide telecommunications and broadcast networks. This action arises out of defendants' dissemination of false and misleading statements about P-Com's business, operations and prospects, which statements were made for the purpose of allowing the individual defendants herein to sell over 672,000 shares of their P-Com stock at prices as high as $23 per share for proceeds of more than $13.1 million and allowing P-Com to use (sell) $42 million worth of P-Com stock as currency to acquire Central Resources Corporation (''CRC''), RT Masts Limited (''RT Masts'') and Telematics, Inc. (''Telematics''). In mid-May 1998, P-Com shares began a precipitous decline, falling 65% from $20 in mid-May to $7 in July, as it began to leak out that P-Com's earnings would fall short of analysts' estimates for 2Q98. Then, on July 16, 1998, the defendants confirmed the foregoing suspicions by stating that ''due to the intensely competitive environment for [the Company's] point-to-point . . . radio products,'' P-Com would earn a mere $0.01 per share for 2Q98 versus analyst expectations of $0.15 and earnings per share of $0.10 in 2Q97. P-Com's stock price fell to around $7 upon this revelation, a 76% decline from its Class Period high, as defendants attempted to affect a ''soft landing'', i.e., slowly revealing the true extent of their false statements and the reasons for P-Com's horrible financial performance in order to avoid liability from victimized P-Com shareholders. Consequently, P-Com's stock price continued to trade at artificially inflated throughout the remainder of the Class Period as defendants maintained that P-Com's revenues would grow 13%-14% in 1998. On September 11, 1998, P-Com finally admitted that it would: (i) completely restructure its business; (ii) cut its work force by 10%; (iii) cut management's pay by 10%; (iv) write off $5-$30 million in inventory; and (v) experience declining 1998 revenues! Upon this revelation, P-Com stock again collapsed and has since traded in the $2-$4 range. Plaintiffs seek to recover damages on behalf of all purchasers of P-Com publicly traded securities 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 30 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigations 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 website at milberg.com. SOURCE: Milberg Weiss Bershad Hynes & Lerach LLP