Salomon Smith Barney's Request for Dismissal in WorldCom Class Action Denied, Parker & Waichman LLP Encourages Current & Former Shareholders & Employees to Evaluate Legal OptionsDec 2, 2003 | PR NEWSWIRE
Southern District of New York Judge Denise Cote has rejected motions from Salomon Smith Barney, a unit of Citigroup(C) to dismiss claims for the firm's involvement in the WorldCom (Pink Sheets: WCOEQ, MCWEQ, MCIAV) scandal. Salomon Smith Barney failed to convince Judge Cote that press reports that cited the firm's conflict of interest with respect to WorldCom should have put plaintiffs on notice that Salomon's financial reporting on WorldCom was biased.
Parker & Waichman, LLP is offering free case evaluations to all current and former WorldCom and MCI shareholders and employees. Current and former MCI and WorldCom shareholders and employees are encouraged to visit www.worldcomstockfraud.com and www.smithbarneyfraud.com to request a free case evaluation.
Parker & Waichman's team is committed to helping current and former MCI and WorldCom shareholders and employees seek compensation for the losses they incurred as a result of the fraudulent activities of Salomon Smith Barney. Parker & Waichman and its affiliated council have already filed hundreds of claims against Salomon Smith Barney on behalf of MCI and WorldCom shareholders, many of whom are former employees.
In October, Judge Cote certified a class action lawsuit against MCI, formerly known as WorldCom, and Citigroup Global Markets, formerly known as Salomon Smith Barney. The 91-page ruling from District Judge Denise Cote grants class status to anyone who acquired publicly traded shares of WorldCom or MCI, in the period from April 29, 1999 to June 25, 2002. A copy of Judge Cote's decision is accessible on the above websites.
Recently, the United States Bankruptcy Court approved MCI's Plan of Reorganization, which paves the way for the company to emerge from Chapter 11 bankruptcy. As a result of MCI's pending emergence from Chapter 11, it is likely that shares of MCI traded under the symbols WCOEQ and MCWEQ will be cancelled, leaving existing shareholders with a mere fraction of their initial investment.
The complaints already filed charge Salomon Smith Barney with violations of Section 15(c) of the Securities Exchange Act of 1934, as well as various state statutes, for issuing fraudulent research reports and for violating NYSE Rules 401, 472 and 476(a)(6), and NASD Rules 2110 and 2210, for issuing research reports that were not based on principles of fair dealing and good faith, did not provide a sound basis for evaluating facts, contained exaggerated or unwarranted claims about the covered companies, and/or contained opinions for which there were no reasonable basis. The misconduct of Salomon Smith Barney was detailed in the settlement announced earlier this year by Securities Regulators and state securities officials.
The complaints also charge that WorldCom violated section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements. WorldCom had publicly announced that instead of the $1.4 billion in profits the Company reported in 2001 and $130 million in the first quarter of 2002, it actually lost a considerable amount of money during those same periods.
For more information on Parker & Waichman, LLP please visit www.yourlawyer.com or call 1-800-YOURLAWYER. Current and former shareholders are also encouraged to visit www.injurytalk.com.
Parker & Waichman, LLP