FOX & KILSHEIMER LLP ANNOUNCES CLASS ACTION SUIT AGAINST PACIFIC
GATEWAY EXCHANGE, INC. AND CERTAIN OF ITS OFFICERS
NEW YORK -- April 7, 2000/Counsel for Class Plaintiff, Kaplan Fox & Kilsheimer LLP today issued
A class action has been commenced in the United States District Court for the Northern District of California on behalf of all persons who purchased or otherwise acquired the common stock of Pacific
Gateway Exchange, Inc. (NASDAQ: PGEX or the "Company") between May 13, 1999 and March 31, 2000, inclusive (the "Class Period").
The lawsuit alleges that during the Class Period, the Company
misled investors by materially overstating its earnings for the first, second and third quarters of 1999, thus causing the Company's stock to trade at artificially inflated prices. It is also alleges that during
the Class Period certain insiders at the Company sold tens of thousands of shares of PGEX stock at artificially inflated prices for proceeds of over $1 million.
On March 31, 2000, after the close of
trading, the Company revealed that it would be restating downward its previously reported quarterly earnings for 1999. The Company also announced the resignation of its CFO. In response, on the next trading
day, the price of PGEX stock plummeted to $101/4 per share down 75% from its Class Period high.
Plaintiff seeks to recover damages on behalf of all persons who purchased or otherwise
acquired PGEX common stock during the Class Period. Plaintiff are represented by the law firms of Kaplan Kilsheimer & Fox LLP, and the Law Offices of Bruce G. Murphy, both of which have many years of
experience in prosecuting investor class actions in the federal and state courts throughout the United States. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.KaplanFox.com.
If you are a member of the Class described above,
you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to
discuss this action or have any questions concerning this case or your rights or interests, please contact:
Joel B. Strauss, Esq.
Brigid T. Kavanaugh, Esq.
Hae Sung Nam, Esq.
Kaplan Fox & Kilsheimer LLP
Fax: (212) 687-7714
E-mail address: mail@KaplanFox.com
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