NEW YORK-A securities class-action lawsuit was recently filed on behalf of purchasers of the common stock of Lucent Technologies Inc. between Oct. 27, 1999, and Jan. 6, 2000.
The lawsuit, filed in the United States District Court for the District of New Jersey, charges Lucent and certain of its directors and executive officers with violations of the Securities Exchange Act of 1934 and Rule 10b-5.
The complaint alleges the defendants issued materially false and misleading information and failed to disclose material information concerning Lucent’s deteriorating financial condition, the lack of demand for Lucent’s products, its inability to control costs and maintain profit margins, and the effects these adverse undisclosed conditions would ultimately have on Lucent’s operations, liquidity, and stock price.
As a result of these misrepresentations and omissions, the lawsuit contends, the price of Lucent’s common stock was artificially inflated throughout the class period. When the truth was disclosed, Lucent’s stock price plunged more than $20 per share.
Plaintiffs seek to recover damages on behalf of all those who purchased or otherwise acquired Lucent common stock during the class period.
