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In re Cable & Wireless, PLC Securities Litigation
(United States District Court for the Eastern
District of Virginia)
Securities fraud class action alleging
that Cable & Wireless, a British telecommunications company,
and certain of its senior officers, released false and misleading information to the investing public
concerning Cable & Wireless' financial condition.
In particular, the Complaint
alleges that Cable & Wireless, by failing to disclose that nearly $2.5 billion of its cash was pledged to
cover potential tax liabilities, misrepresented the amount of "free cash" it had for expansion
of its business; that Cable & Wireless engaged in sham transactions with U.S. telecommunications
companies designed solely to fraudulently boost its revenues; and that it failed to disclose
over $2 billion of its future lease commitments. The action was filed on behalf of
purchasers of Cable & Wireless' American Depositary Receipts, known as ADRs
(traded on the New York Stock Exchange), and purchasers of Cable & Wireless'
ordinary shares (traded on the London Stock Exchange) during the period
August 6, 1999 through December 6, 2002.
On April 21, 2003, the Court appointed BLB&G client the Ontario Teachers'
Pension Plan Board as Co-Lead Plaintiff for the class and BLB&G as Co-Lead Counsel
for the Class. On May 27, 2003, BLB&G, along with co-counsel, filed a
Consolidated Class Action Complaint in this action.
On May 13, 2005, the parties entered into a settlement agreement for $7 million in cash. A
settlement hearing was held on July 22, 2005 at 10:00 am at the Albert V. Bryan U.S. Courthouse, 401 Courthouse Square,
Alexandria, Virginia 22314, during which the Court granted final approval to the settlement, the plan of allocation,
and the application for attorneys' fees and reimbursement of litigation expenses. The Judgment approving the
Settlement and dismissing the Action against all defendants was entered on August 1, 2005.
IN ORDER TO BE ELIGIBLE TO SHARE IN THE BENEFITS OF THE SETTLEMENT,
CLASS MEMBERS MUST HAVE PREVIOUSLY SUBMITTED A COMPLETED AND
SIGNED PROOF OF CLAIM FORM POSTMARKED NO LATER THAN SEPTEMBER 30, 2005.
Click below to view:
Proof of Claim and
Release
Notice of
Pendency of Class Action
Firm partners Steven Singer and
Jeff Leibell are responsible for
prosecuting this action.
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