Case Page

 

Case Status:    SETTLED
On or around 12/18/2001 (Date of order of final judgment)

Filing Date: September 18, 1998

According to a press release dated January 18, 2002, with trial set for November 5, 2001, a settlement was reached in October 2001. Alcatel agreed to pay $75 million to the class. The Court approved the settlement and entered final judgment on December 18, 2001. The Court awarded attorneys' fees of $14,280,314.40 to counsel for the plaintiffs. Pursuant to an agreement with co-counsel, Susman Godfrey recovered $5,407,503.39 in fees. The settlement became final on January 18, 2002 because there were no appeals from the final judgment.

As summarized by the Company’s Form 20-F for the fiscal year ended December 31, 2002, the Actions purported to be brought on behalf of classes consisting of persons who (i) acquired Class A ADSs in connection with our acquisition of DSC Communications Corporation in September 1998, or (ii) purchased Class A ADSs between March 19, 1998 through September 17, 1998, or acquired call and put options on Class A ADSs between March 19, 1998 and September 17, 1998. The Actions were consolidated in the U.S. District Court for the Eastern District of Texas. The Company moved to dismiss the complaints brought by the two categories of plaintiffs. On November 18, 1999, the court dismissed the complaint of those persons who acquired Class A ADSs and call and put options between March 19, 1998 and September 17, 1998, with leave to amend. Those plaintiffs appealed, but the U.S. Court of Appeals for the Fifth Circuit affirmed the dismissal of their complaint on July 1, 2002. The time period for these plaintiffs to seek a writ of certiorari from the U.S. Supreme Court expired on September 30, 2002, and this matter can now be considered closed. The claims of the other group of plaintiffs, representing those parties that received Class A ADSs as a result of the Company's acquisition of DSC by merger, were settled in December 2001, without admission by the Company of any liability or wrongdoing. The cost to the Company of this settlement not covered by its insurance was $4 million.

Several purported class action complaints were also filed in the U.S. District Courts for the Southern District of New York and Delaware. In March 1999, the cases were transferred to the U.S. District Court for the Eastern District of Texas. The case was then handled in Multidistrict Litigation, case number 4:99md1263.

The original class action complaint was filed alleging defendants with violations of securities laws by concealing poor operating results, and inflating its stock price. According to the lawsuit, DSC stockholders were wrongfully induced to exchange their DSC shares for Alcatel ADSs at an artificially inflated rate. The lawsuit alleges that defendants' proxy statement/prospectus failed to disclose that Alcatel's operating results in the first half of 1998 were worse than the Company had led investors to expect. These omissions prompted DSC shareholders to approve the merger, which had terms granting them only .815 ADSs for each DSC share they possessed. According to the lawsuit Alcatel did not hint at the truth of the operating results until Sept. 17, 1998, nine days after it announced completion of the merger, when it dropped a bombshell: its revenues and operating profits for the first half of 1998 declined 29% and 15% respectively from the prior year. This stunning announcement caused an immediate drop in Alcatel's ADS price from $31-5/16 to $19-1/8. This notice to class members is being made pursuant to applicable law. If you acquired Alcatel ADSs pursuant to its subsidiary's merger with DSC, you may wish to join the action. You may move the court to serve as a lead plaintiff on or before 60 days from Nov. 17, 1998.

COMPANY INFORMATION:

Sector: Technology
Industry: Electronic Instruments & Controls
Headquarters: France

SECURITIES INFORMATION:

Ticker Symbol: ALA
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: E.D. Texas
DOCKET #: 98-CV-02212
JUDGE: Hon. A. Joe Fish
DATE FILED: 09/18/1998
CLASS PERIOD START: 03/19/1998
CLASS PERIOD END: 09/17/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrack, Rodos & Bacine (San Diego - former)
    402 West Broadway , Barrack, Rodos & Bacine (San Diego - former), CA 92101
    619.230.0800 619.230.1874 · info@barrack.com
No Document Title Filing Date
COURT: E.D. Texas
DOCKET #:
JUDGE: Hon. A. Joe Fish
DATE FILED: 11/14/2000
CLASS PERIOD START: 03/19/1998
CLASS PERIOD END: 09/17/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 02109
    617.542.8300 ·
  3. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  4. Boies, Schiller & Flexner LLP (New York)
    575 Lexington Avenue, Boies, Schiller & Flexner LLP (New York), NY 10022
    212.446.2383 212.446.2350 ·
  5. Gerard Singer & Levick, P.C.
    16200 Addison Road, Suite 140 , Gerard Singer & Levick, P.C., TX 75001
    972.380.5748. ·
  6. Kaplan Fox & Kilsheimer, LLP (former New York, NY)
    805 Third Avenue, 22nd Floor, Kaplan Fox & Kilsheimer, LLP (former New York, NY), NY 10022
    212.687.1980 212.687.7714 · info@kaplanfox.com
  7. Kilgore & Kilgore
    3131 McKinney Ave., LB 103, Ste. 700, Kilgore & Kilgore , TX 75204-2471
    214.969.9090 214.953.0130 · dcm@kilgorelaw.com
  8. Stanley, Mandel & Iola LLP (Dallas)
    3100 Monticello Avenue, Suite 750 , Stanley, Mandel & Iola LLP (Dallas), TX 75205
    214.443.4300 ·
  9. Susman, Godfrey LLP (Dallas)
    4100 Bank of America, 901 Main Street, Susman, Godfrey LLP (Dallas), TX 75202
    214.754.1908 · mevans@susangodfrey.com
No Document Title Filing Date
No Document Title Filing Date