According to the docket, on October 18, 2004, the Court entered the Order by U.S. District Judge Charles L. Brieant granting the motion to dismiss the action against all Defendants.
According to the complaint, plaintiffs bring this class action for violations of the Securities Exchange Act of 1934, against Ernst & Young LLP and certain senior officers and directors of Metromedia Fiber Network, Inc. (MFN) on behalf of a proposed class of persons who purchased or otherwise acquired Metromedia common stock during the Class Period. During the Class Period, the Individual Defendants knowingly and/or recklessly caused MFN to issue to the investing public materially false and misleading financial statements, press releases, SEC filings that materially misstated, inter alia, Metromedia’s assets, revenues, expenses and net losses in violation of the federal securities laws. Among other things, although the value of MFN’s highly touted fiber optic network and goodwill recorded in connection with its acquisitions of AboveNet Communications, Inc. and SiteSmith, Inc., the Company’s interest subsidiaries, had declined substantially given, inter alia, the oversupply of fiber in the industry and the precipitous decline in the value of telecom and internet companies, including MFN, that occurred beginning in early 2000, defendants failed to write down the value of theses assets to fair market value as required by Generally Accepted Accounting Principles (GAAP). As a result, the value of MFN’s assets was materially overstated and its expenses and net losses were materially understated throughout the Class Peroid.