Barrack Rodos Issues Update on Class Action Against Lucent Technologies, Inc. and Certain of its Officers

Business Wire, Feb 21, 2000

Business Editors/Legal Writers

PHILADELPHIA--(BUSINESS WIRE)--Feb. 21, 2000

Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following:

A class action has been commenced in the United States District Court for the District of New Jersey on behalf of all persons who purchased the common stock of Lucent Technologies, Inc. (NYSE: LU) ("Lucent" or the "Company") between October 27, 1999 and January 6, 2000, inclusive (the "Class Period"). The complaint charges Lucent and certain of its officers with violations of federal securities laws by making misrepresentations about the Company's business, earnings growth, and financial statements, as well as its ability to continue to achieve profitable growth. The complaint alleges that during the Class Period, Lucent led the market to believe that its plan to restructure its operations into four divisions would produce consistently more profitable results. Based significantly on guidance provided by the Company, the price of Lucent stock continued to rise throughout the Class Period, reaching a high of over $84.00 per share on December 9, 1999. Then, on January 6, 2000, Lucent revealed that results for the first fiscal quarter of 2000 would fall materially short of analysts' expectations. The complaint alleges that, contrary to the Company's representations during the Class Period, demand for Lucent's products and the Company's profit margins were declining, its costs were increasing, and it had failed to supply products in sufficient quantities to meet market demand. These revelations caused the price of Lucent common stock to fall to $52.19, a decline of 38% from its Class Period high.

The plaintiff seeks to recover damages on behalf of all purchasers of Lucent common stock during the Class Period. Plaintiff is represented by the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions involving financial fraud. Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years. The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey and has been designated lead counsel by federal and state courts across the country in large, complex cases. For more information about Barrack, Rodos & Bacine, please visit its website at www.barrack.com.

If you are a member of the Class described above, you may, no later than March 7, 2000, move the Court to serve as lead plaintiff of the Class, if you so choose. 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: Maxine S. Goldman, Shareholder Relations Manager, at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, at 800-417-7305 or 215-963-0600, fax number 888-417-7306 or 215-963-0838, or by e-mail at msgoldman@barrack.com