NEW YORK, Jan. 3, 2002 (PRIMEZONE) -- Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") has filed 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. ("XO" or the "Company") (Nasdaq:XOXO) 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 stated that XO had sufficient cash to survive at least into mid 2003 without the need for further financing. These statements were false, and on November 29, 2001, defendants announced a transaction where the shareholders' equity was destroyed in exchange for a cash infusion of $800 million. Trading in the Company's stock was immediately halted.
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. Section 78u-4). Please note, however, that class members need not seek appointment as lead plaintiff in order to share in any recovery resulting from this litigation.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (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)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca