Wechsler Harwood Commences A Class Action Suit Against XO Communications, Inc. (XOXO)
PRNewswire
NEW YORK
Dec 12, 2001
Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") has been engaged to file a securities fraud class action lawsuit in the United States District Court for the Eastern District of Virginia, on behalf of purchasers of XO Communications, Inc. (NASDAQ: XOXO) ("XO" or the "Company") common stock between April 4, 2001 and November 29, 2001, inclusive (the "Class Period"). The defendants include XO; Chief Executive Officer and Chairman of the Board of Directors, Daniel F. Akerson; President, Chief Operating Officer and Director, Nathaniel A. Davis; and Craig O. McCaw, the Company's founder, controlling shareholder, and Director.
The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 by, among other things, issuing false and misleading statements regarding XO's financial condition as well as its present and future business operations. In particular, the Complaint alleges that defendants misled the investing public concerning the Company's ability to finance its business operations until it becomes cash-flow positive. Throughout the Class Period, defendants falsely stated that XO had sufficient cash to meet cash requirements into mid-2003 without the need for further financing.
On November 29, 2001 to the market's surprise, XO, strapped for cash, announced a transaction that would virtually eliminate existing shareholders' equity resulting from the conditional investment and proposed related restructuring by a buy-out firm and foreign investor. Upon the announcement, trading in the Company's stock was immediately halted by the Company's regulators, the National Association of Securities Dealers, Inc. ("NASD"). The NASD announced that trading in XO's securities will remain halted until the Company "has fully satisfied the NASDAQ's request for additional information."
Plaintiff seeks to recover damages on behalf of class members. If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than February 4, 2002, move the Court to serve as a lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. S 78u-4).
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (http://www.whhf.com/) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue 8th Floor New York, New York 10022 Phone: 877-935-7400 (Toll Free)
Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whhf.com.
SOURCE: Wechsler Harwood Halebian & Feffer LLP
Contact: Craig Lowther of Wechsler Harwood Shareholder Relations
Department, +1-877-935-7400, clowther@whhf.com
Website: http://www.whhf.com/