Vodafone Facing Class Action Lawsuit

The US law firm of Milberg Weiss Bershad Hynes & Lerach LLP has filed a class action lawsuit against Vodafone. The action is pending in the United States District Court, Southern District of New York against Vodafone, Ian Maclaurin, Sir Chris Gent, Julian Horn-Smith and Ken Hydon.

The Complaint alleges that defendants issued a series of material misrepresentations to the market between March 7, 2001 and May 28, 2002, thereby artificially inflating the price of Vodafone securities. The complaint alleges that, throughout the Class Period, defendants issued numerous statements which highlighted the Company's strong financial performance and growth and reassured investors that Vodafone maintained a "solid balance sheet."

The lawsuit claims that Vodafone improperly delayed the write-down of billions of dollars of goodwill and impaired assets, thereby artificially inflating the Company's reported financial results. They also claim that Vodafone overpaid for assets it purchased.

At the end of the Class Period, the price of Vodafone ADRs closed at US$15.19 per ADR, as compared to a Class Period high of US$33.26 per ADR.'"

Posted to the site on 1st October 2002