Spector, Roseman & Kodroff, P.C. Announces Class Action Suit Against Comcast Corp.
The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit was commenced in the United States District Court for the Eastern District of Pennsylvania, on behalf of purchasers of the common stock of Comcast Corp. (“Comcast” or the “Company”) (NASDAQ:CMCSA) between February 1, 2007 through December 4, 2007, inclusive (the “Class Period”).
The Complaint alleges that the defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period. Specifically, Comcast failed to disclose: (i) that it was experiencing increased competition from satellite providers and telephone companies; (ii) that this adverse trend was worsening; (iii) that the level of capital expenditures necessary to upgrade and maintain its technology and equipment was rising beyond internal expectations; and (iv) as a result of the foregoing undisclosed material information, Comcast’s earnings guidance lacked any reasonable basis during the Class Period.
On October 25, 2007, Comcast issued a press release announcing its financial results for the third quarter of 2007, the period ended September 30, 2007. The Company reported that third-quarter net income fell 54% from the prior year and that it was experiencing slowing subscriber growth. Following this announcement, the price of Comcast common stock fell $2.57 per share, or approximately 11%, to close at $21.28 per share, on heavy trading volume.
Finally, on December 4, 2007, after the markets closed, the Company issued a press release announcing that it was cutting its 2007 user growth forecast of 6.5 million revenue generating units (“RGUs”) to 6 million RGUs and that its revenue and cash flow growth projections would fall short of expectations. Upon this news, the price of Comcast common stock fell an additional $2.55 per share, or approximately 12%, to close at $18.18 per share, on heavy trading volume.
If you purchased Comcast securities during the Class Period, you may, no later than March 3, 2008, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the “largest financial interest” in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the “largest financial interest,” and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Comcast securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel Robert M. Roseman or Andrew D. Abramowizt toll-free at 888-844-5862 or e-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.