Case Page

 

Case Status:    SETTLED
On or around 03/20/2007 (Date of order of final judgment)

Filing Date: April 10, 2001

According to the lead counsel’s website, there was a partial settlement of $12 million, but the action is continuing against other defendants.

The original complaint alleges that the Winstar made material misrepresentations and omissions of material facts concerning the company's business performance during the relevant time. The complaint also alleges that other defendants, not just the issuer defendant, repeatedly assured investors that the company was performing well, enjoying strong grwoth and well funded to follow its growth-oriented business plan throughout Q1 2002. At the same time, the defendants knew or disregarded that Winstar was overstating revenues and assets. In 04/2001, contrary to prior representations, Winstar announced that it was halting its expansion and laying off thousands of employees. The company delayed the filing of its annual Reports with the SEC and its stock price collapsed.

More specifically, throughout the class period, defendants engaged in a variety of manipulative and deceptive schemes that served to vastly overstate Winstar's business success, sales and earnings and to facilitate a massive fraud on public investors. Among other things, Winstar engaged in numerous highly suspicious and unusual "end-of-quarter" transactions with Lucent - Winstar's largest supplier and single largest source of financing - and with other parties that served to falsely and artificially inflate the Company's reported sales and earnings. Most of these transactions lacked economic substance and could not properly serve as the basis for reported sales and revenues. As a result, much of the Company's reported revenues and earnings during the Class Period were fictitious in nature.

NOTE: Winstar is not named as a defendant in this case because it filed for bankruptcy protection in April 2001.

COMPANY INFORMATION:

Sector: Services
Industry: Communications Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: WCII
Company Market: NASDAQ
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: S.D. New York
DOCKET #: 01-CV-03014
JUDGE: Hon. George B. Daniels
DATE FILED: 04/10/2001
CLASS PERIOD START: 08/02/2000
CLASS PERIOD END: 04/02/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA)
    225 Broadway, Suite 1900, Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA), CA 92010
    619.702.7350 619.702.7351 ·
  2. Law Offices of Robert P. Sugarman
    50 Charles Linbergh Boulevard, Law Offices of Robert P. Sugarman, NY 11553
    516.390.4749 ·
  3. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  4. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
  5. Shalov Stone & Bonner LLP
    276 Fifth Avenue, Suite 704, Shalov Stone & Bonner LLP, NY 10001
    212.686.8004 212.686.8005 · lawyer@lawssb.com
  6. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  7. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 01-CV-03014
JUDGE: Hon. George B. Daniels
DATE FILED: 03/25/2002
CLASS PERIOD START: 03/10/2000
CLASS PERIOD END: 04/02/2001
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. Law Offices of Robert P. Sugarman
    50 Charles Linbergh Boulevard, Law Offices of Robert P. Sugarman, NY 11553
    516.390.4749 ·
  3. Shalov Stone & Bonner LLP
    276 Fifth Avenue, Suite 704, Shalov Stone & Bonner LLP, NY 10001
    212.686.8004 212.686.8005 · lawyer@lawssb.com
  4. Shapiro Haber & Urmy LLP (Boston)
    75 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 · info@shulaw.com
  5. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
No Document Title Filing Date