Cohen, Milstein Files Suit Against Alcatel for Defrauded DSC Shareholders
BusinessWire, Wednesday, October 07, 1998 at 16:47
SEATTLE--(BUSINESS WIRE)--Oct. 7, 1998--The following Notice is
issued by the law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
on behalf of its client, who on October 7, 1998, filed a lawsuit in
the United States District Court for the Northern District of Texas
against Alcatel Alsthom (NYSE:ALA) on behalf of shareholders of DSC
Communications Corp. (NASDAQ:DIGI) who exchanged their shares of DSC
for shares of Alcatel pursuant to a merger dated September 8, 1998.
The complaint asserts claims under the federal securities laws
for violations of Sections 11, 12(a)(2) and 15 of the Securities Act
of 1933. Plaintiff seeks to recover losses suffered by investors who
exchanged their shares of DSC for shares of Alcatel pursuant to a
merger dated September 8, 1998. The lawsuit alleges 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. Alcatel's stock price had closed at $37 per
share on September 8, 1998, the day of the merger.
Plaintiff's counsel in this action -- Cohen, Milstein, Hausfeld &
Toll, P.L.L.C. (www.cmht.com) -- has significant experience in
prosecuting investor class actions and actions involving financial
fraud. The firm has offices in Washington D.C. and Seattle and is
active in major litigation pending in federal and state courts
throughout the nation. The firm's reputation for excellence has been
recognized on repeated occasion by the courts, which have appointed
the firm to lead positions in complex multi-district or consolidated
litigation, including numerous cases on behalf of defrauded investors.
If you are a member of the Class who exchanged shares of DSC for
shares of Alcatel pursuant to the merger, you may move the Court, not
later than sixty days from September 23, 1998, to serve as lead
plaintiff for the Class. In order to serve as lead plaintiff, you must
meet certain legal standards.
If you have any questions about this Notice or the action, or
with regard to your rights, please contact any one of the following
attorneys: Andrew N. Friedman (afriedman@cmht.com) at 888/240-0775
or 202/408-4600, 1100 New York Ave. NW, West Tower, Suite 500,
Washington, DC, 20005, or Steven J. Toll (stoll@siteconnect.com) at
888/240-1238 or 206/521-0080, 999 Third Avenue, Suite 3600, Seattle,
Washington 98104.
CONTACT: Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
Andrew N. Friedman, 888/240-0775
facsimile, 202/408-4699
afriedman@cmht.com
or
Steven J. Toll, 888/240-1238
facsimile, 206/521-0166
stoll@siteconnect.com
KEYWORD: WASHINGTON TEXAS
INDUSTRY KEYWORD: GOVERNMENT BANKING
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