PRESS RELEASE
In re Worldport Communications Securities Litigation,
United States District Court for the Northern District of Georgia
[Case Description ]
[Complaint ]
[Settlement Notice ]
[Court Decision ]
[Request Information ]
WorldPort Communications, Inc. Sued By Institutional Stock
Purchaser In Class Action Filed By Donovan Searles, LLC
Philadelphia, July 22, 1999 The law firm of Donovan
Searles, LLC, announced today that a class action lawsuit was filed in
the United States District Court for the Northern District of Georgia
against WorldPort Communications, Inc. (Nasdaq:WRDP - news) and its two
highest officers, Paul A. Moore and Phillip Magiera, on behalf of all
persons who purchased WRDP common stock between January 4 and June 25, 1999,
inclusive (the ``Class Period''), Case No. 1-99-CV-1883.
The plaintiff in the case is an institutional stock purchaser which
is alleged to have sustained losses in excess of $800,000.
The Complaint alleges that, during the Class Period, WorldPort and its two
highest officers (collectively, the ``Defendants'') violated Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934, by among other things,
issuing materially false and misleading statements to the investing public
regarding an equity transaction the Company entered into with Heico
Companies, LLC. In particular, the Complaint alleges that the Defendants
failed to reveal that the sale of super-voting stock to Heico, and
effective transfer of corporate control to Heico, without a vote of
shareholders, violated NASD regulations and jeopardized the continued
listing of WorldPort shares on NASDAQ. In addition, the Complaint alleges
that WorldPort failed to disclose that a hearing occurred before a NASDAQ
listing committee on June 24, 1999 and that the Company thereafter failed to
obtain a trading halt before announcing on June 28, 1999 that NASDAQ had
questioned the Company's compliance with NASDAQ listing requirements.
Plaintiff is represented by the law firm of Donovan Searles, LLC and others.
The members of Donovan Searles, LLC have significant experience in litigating
class actions on behalf of investors and shareholders.
If you are a member of the class described above, you may move the court to serve as
lead plaintiff within 60 days of July 14, 1999. If you wish to
discuss this action or any other securities we are investigating,
or have any questions concerning your rights, please
contact Michael D. Donovan at Donovan Searles, LLC, 1845 Walnut Street,
Suite 1100, Philadelphia, PA 19103; phone: 1-800-619-1677,
or click here to contact
us by form.