WASHINGTON—Finkelstein, Thompson & Loughran filed a securities fraud class-action lawsuit in the U.S. District Court for the Eastern District of Virginia on behalf of purchasers of XO Communications.
The defendants include XO Chief Executive Officer (CEO) and Chairman of the board of directors Daniel F. Akerson; President, Chief Operating Officer (COO) and Director Nathaniel A. Davis; and Craig O. McCaw, the company’s founder, controlling shareholder and director.
The complaint charges that, among other things, the defendants issued false and misleading statements regarding XO’s financial condition, as well as its present and future business operations. In particular, the complaint alleges the defendants misled the investing public concerning the company’s ability to finance its business operations until it became cash-flow positive.
XO had stated it had sufficient cash to survive at least into mid-2003, without the need for further financing, the law firm said.
