Cauley & Geller, LLP Announces Fraud Lawsuit Filed On Behalf of Purchasers of Teleglobe Inc. Securities.Business Editors SAN DIEGO--(BUSINESS WIRE)--Aug. 11, 2000 The following is an announcement from the law firm of Cauley & Geller, LLP LLP - Lower Layer Protocol : The law firm of Cauley & Geller, LLP announced today that a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax has been filed in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of on behalf of all persons who purchased Teleglobe Inc. ("Teleglobe" or the "Company") (NYSE NYSE See: New York Stock Exchange :TGO TGO Togo (ISO Country code) TGO Tarifverbund Ortenau GmbH (German) TGO The Great One (Wayne Gretzky) TGO Toxic Gas Ordinance TGO Total Gross Output ) between February 11, 1999 and July 29, 1999, inclusive (the "Class Period"). The complaint charges Teleglobe and certain officers and directors with violating federal securities laws by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of Teleglobe common stock. The complaint alleges that during the Class Period, Teleglobe's profitability was plummeting as a result of back office problems in its newly-acquired Excel division, a severe price war in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. wholesale long distance market, shrinking profit margins in nearly all of its business lines and adverse fluctuations in certain currency markets. Nevertheless, as alleged in the complaint, throughout the Class Period, defendants falsely represented that these problems were merely isolated events in order to permit Teleglobe to raise the capital it needed to finance its $5 billion global telephone network called GlobeSystem, which would facilitate Teleglobe's transition from a provider of slow growing/low margin telephone services to a provider of fast growing/higher margin data services. However, as alleged in the complaint, just eight days after Teleglobe sold $1 billion worth of bonds to unsuspecting investors, it announced that it would badly miss analysts' earnings estimates for the second quarter in a row. Upon this announcement, the price of Teleglobe common stock collapsed in value from $27 13/16 per share to $21 11/16 per share on huge trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. which was many times more than Teleglobe's average daily trading volume. Cauley & Geller, LLP has substantial experience in prosecuting class action lawsuits on behalf of investors. The firm has offices in Arkansas, Florida and California, but represents shareholders from throughout the nation. If you wish to serve as one of the lead plaintiffs in this lawsuit you must file the appropriate motion with the court by September 25, 2000. If you have any questions regarding this lawsuit or how you may be able to recover for the losses you have incurred, you are encouraged to visit our website at www.classlawyer.com , or E-mail or call us at: Cauley & Geller, LLP 225 Broadway, Suite 1900 San Diego, CA 92101 E-mail: info@classlawyer.com 888/551-9944 -- toll free www.classlawyer.com |
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