NEW YORK, Aug. 22, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of Metromedia Fiber Networks, Inc. ("Metromedia" or the "Company") (Nasdaq:MFNX) common stock between January 8, 2001 and July 2, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's Website at www.faruqilaw.com.
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that defendants engaged in a fraudulent scheme to mislead the investing public that it had a fully underwritten credit facility for $350 million from Citicorp, USA ("Citicorp"), which defendants represented, would fully fund its business plan. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period, reaching as high as $19.06 on January 19, 2001. On July 2, 2001, however, the truth was revealed when the Company announced Citicorp had only committed to $65.5 million, and that the other $287.5 million was subject to the receipt of commitments from other lenders, which defendants did not have. In response to this announcement, the price of Metromedia's stock closed at $1.93 on July 3, 2001, representing an approximate 90% decline from its Class Period high.
Plaintiff seeks to recover damages on behalf of herself and all other individual and institutional investors who purchased or otherwise acquired Metromedia securities between January 8, 2001 and July 2, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our Website at www.faruqilaw.com
If you purchased Metromedia securities during the Class Period, you may, not later than October 22, 2001, 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. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ.
FARUQI & FARUQI, LLP
320 East 39th Street
New York, NY 10016
Telephone: (877) 247-4292 or (212) 983-9330
e-mail Avozz@faruqilaw.com
www.faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca