NEW YORK, April 11, 2001 (PRIMEZONE) -- Shalov Stone & Bonner (www.lawssb.com) issued the following announcement today: A class action was commenced on behalf of all persons who purchased the securities of Winstar Communications Inc. (Nasdaq:WCII) in the period from August 2, 2000 to April 2, 2001. The complaint names Winstar, William Rouhana, Richard Uhl and Nathan Kantor as defendants.
The complaint alleges that the defendants made material misrepresentations and omissions of material facts concerning the company's business performance during the relevant time. According to the complaint, throughout the relevant time period, defendants repeatedly assured investors that the company was performing well, that the company was enjoying strong growth and that it was well-funded to follow its growth-oriented business plan through the first quarter of 2002. At the same time, however, the complaint alleges that the defendants knew or recklessly disregarded that Winstar was overstating revenues and assets. In April 2001, contrary to prior representations, Winstar announced that it was halting its expansion and laying off thousands of employees. The company has delayed the filing of its annual Report on Form 10-K with the SEC and its stock price has collapsed. The lawsuit was filed in the United States District Court for the Southern District of New York.
Plaintiffs are represented by the law firm of Shalov Stone & Bonner, which has extensive experience in the prosecution of class actions on behalf of investors. For more information about Shalov Stone & Bonner, please visit the firm's Website at: www.lawssb.com
If you are a member of the class described above, you may, not later than sixty days from today, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements, as set forth in the Private Securities Litigation Reform Act of 1995.
If you would like to participate in this action or would like additional information about the lawsuit, please visit the firm's Website at www.lawssb.com.
You may also contact the firm by mail or email. Shalov Stone & Bonner (Mark J. Nemetz, Law Clerk), 276 Fifth Avenue, Suite 704, New York, New York 10001, email: mark@lawssb.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.