Wechsler Harwood Halebian & Feffer LLP Announces Filing of Class Action On Behalf of Investors of Tyco International Ltd.
PRNewswire
NEW YORK
Feb 15, 2002
The law firm of Wechsler Harwood Halebian & Feffer LLP has filed a class action lawsuit on behalf of all persons who purchased or otherwise acquired the common stock of Tyco International Ltd. ("TYCO") (NYSE: TYC) between February 1, 2000 through February 1, 2002, inclusive (the "Class Period").
The action, filed on February 8, 2002, is pending in the United States District Court for the Southern District of New York (500 Pearl Street, New York, New York). A copy of the complaint is available from Wechsler Harwood Halebian & Feffer LLP.
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of TYCO common stock.
The complaint alleges that TYCO's representations were rendered false and misleading by defendants' failure to disclose: (a) that TYCO would achieve its earnings targets only through undisclosed acquisitions; (b) that the individual defendants sold in excess of $100,000,000 of their individual stock holdings to the company; and (c) that TYCO's management procedures were to make large payments to insiders, including a $20,000,000 payment to one director and his charity for furthering the interests of TYCO.
The complaint further alleges that external rule changes required TYCO to cease its allegedly aggressive revenue recognition practices and recognize the revenues from its security contracts only as the monies thereunder were received. Throughout the Class Period, defendants were allegedly aware that the adverse financial effect of the rule change by the Securities and Exchange Commission would be approximately $1,000,000,000. However, defendants allegedly failed to disclose this adverse financial effect until partial disclosure was made in October 2001. As defendants belatedly announced portions of the foregoing material facts between October 2001 and January 2002, TYCO stock fell allegedly by more than 40 plus percent.
Wechsler Harwood has extensive experience representing shareholders in class actions and has served as lead counsel on behalf of shareholders in many such actions. The reputation and expertise of this firm in shareholder and other class actions has repeatedly been recognized by the courts.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than April 7, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Wechsler Harwood Halebian & Feffer LLP, 488 Madison Avenue, New York, New York 10022, toll free 877-935-7400, or by contacting David Leifer, Wechsler Harwood Shareholder Relations Department; Tyco International Ltd.: dleifer@whhf.com.
SOURCE: Wechsler Harwood Halebian & Feffer LLP
Contact: David Leifer, Wechsler Harwood Halebian & Feffer LLP,
+1-877-935-7400
Website: http://www.whhf.com/