Gold Bennett Cera & Sidener LLP Extends Class Period In Class Action Lawsuit Filed Against Covad Communications Group, Inc.

    SAN FRANCISCO, Calif., Nov. 18 /PRNewswire/ -- Gold Bennett Cera & Sidener
 LLP announced today that it had filed a class action in the United States
 District Court for the Northern District of California, Case No. C-00-4293-BZ,
 on behalf of purchasers of Covad Communications Group, Inc. ("Covad" or the
 "Company") (Nasdaq:   COVD) common stock during the period between September 7,
 2000 through November 14, 2000  (the "Class Period"), including those who
 acquired Covad shares in connection with Covad's acquisition of BlueStar
 Communications Group ("BlueStar"') and those who acquired Covad convertible
 senior notes.  Plaintiff seeks to recover damages on behalf of all purchasers
 of Covad securities during the Class Period.
     The plaintiff is represented by the San Francisco law firm of Gold Bennett
 Cera & Sidener LLP.  For over 30 years, Gold Bennett Cera & Sidener LLP and
 its predecessors have successfully engaged in complex commercial litigation,
 including shareholder, consumer and antitrust class actions, in federal and
 state courts throughout the United States, recovering hundreds of millions of
 dollars for its clients.  Purchasers of Covad securities may visit the Firm's
 website at http://www.gbcsf.com for additional information.
     The complaint charges Covad and certain of its officers and directors with
 violations of the Securities Exchange Act of 1934.  The complaint alleges that
 defendants misrepresented the revenues that Covad was deriving from its newly
 acquired BlueStar business, which, together with defendants' false
 representations that Covad would post Q3 2000 EPS of $(1.18) and revenues of
 $74.7 million, operated to artificially inflate the price of Covad stock to a
 Class Period high of $20.93 on September 11, 2000.  This upsurge in Covad's
 stock caused by defendants' alleged false and misleading statements enabled
 Covad to complete a $500 million bond offering and the $140 million
 stock-for-stock acquisition of BlueStar.  On October 17, 2000, 15 business
 days after the acquisition of BlueStar was completed and just 18 business days
 after Covad raised $500 million in a debt offering, Covad revealed that it was
 in fact suffering a huge decline in revenues, was not posting smaller negative
 EPS growth, and contrary to defendants' repeated assurances, Covad was forced
 to reveal the problems it had been experiencing during the Class Period in
 attempting to grow its business.  This announcement caused its stock price to
 drop to as low as $3.50 (or over $5 per share) on record volume of 70 million
 shares on October 18, 2000, causing hundreds of millions of dollars in damages
 to members of the Class.  Finally, on November 14, 2000, Covad announced that
 the Company would be adjusting its previously announced third quarter 2000
 financial results, resulting in its stock price dropping over 20% on very high
 trading volume.
     If you purchased or otherwise acquired Covad securities during the Class
 Period, including those who acquired Covad shares in connection with Covad's
 acquisition of BlueStar and those who acquired Covad convertible senior notes,
 you have until December 19, 2000 to 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 case or your rights or interests, please
 contact Joseph M. Barton, Esq. of Gold Bennett Cera & Sidener LLP, 595 Market
 Street, Suite 2300, San Francisco, California 94105, by telephone at
 (800) 778-1822 or (415) 777-2230, by facsimile at (415) 777-5189 or by e-mail
 at Covad@gbcsf.com.
 
 

SOURCE Gold Bennett Cera & Sidener LLP

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.