PHILADELPHIA, Sept. 17,2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C.(http://www.investorprotect.com), filed a class action today in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased Metromedia Fiber Network, Inc. (Nasdaq:MFNX) securities during the period from January 8, 2001 through July 2, 2001, inclusive (the ``Class Period'').
The complaint charges Metromedia Fiber Network, Inc. and certain of its officers and/or directors with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 by reason of material misrepresentations and/or omissions in SEC filings and other public statements. Specifically, the complaint alleges that throughout the Class Period, defendants materially misrepresented the terms and status of a purported $350 million credit facility from Citicorp USA, Inc. (``Citicorp''), which would enable Metromedia to complete the construction of an extensive fiber optic network. Additionally, the complaint alleges that defendants misrepresented the amount of funding Metromedia would need to execute its business plan. Defendants' statements were materially false and misleading because defendants' characterization of Citicorp's commitment as being subject only to ``definitive documentation'' failed to disclose that: (1) material terms of the Citicorp credit facility were still being negotiated, and as ultimately amended, the credit facility was only for $62.5 million and was contingent on the receipt of additional commitments from other lenders; and (2) that the $350 million credit facility, even had it been committed, was insufficient to fund the company's business plan.
The lawsuit seeks to recover losses suffered by individual and institutional investors who purchased the Company's securities during the Class Period at artificially inflated prices.
If you purchased Metromedia Fiber Network, Inc.'s securities during the Class Period, you may, no later than October 22, 2001 move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the ``largest financial interest'' in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the ``largest financial interest,'' and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Metromedia securities during the Class Period, please contact Berger & Montague, P.C. at, http://www.investorprotect.com, for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
The law firm of Berger & Montague, P.C. has more than 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action. No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May 2000).
"...[Y]ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased Metromedia securities and have any questions concerning this notice or your rights with respect to this matter, please contact:
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca