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