Savett Frutkin Podell &Ryan, P.C. Files Class Action Against Lucent Technologies, Inc

Business Wire, Jan 27, 2000

Business Editors/Legal Writers

PHILADELPHIA--(BUSINESS WIRE)--Jan. 27, 2000

Savett Frutkin Podell &Ryan, P.C. hereby gives notice that a class action complaint has been filed in the United States District Court for the District of New Jersey on behalf of a Class of persons who purchased the common stock of Lucent Technologies, Inc. (NYSE: LU) (&uot;Lucent&uot; or the &uot;Company&uot;) at artificially inflated prices during the period October 27, 1999 through January 6, 2000 (&uot;Class Period&uot;) and who were damaged thereby.

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 consistenly 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 in 38% from its Class Period high.

Plaintiff seeks to recover damages on behalf of all purchasers of Legato common stock during the Class Period. The plaintiff is represented by Savett Frutkin Podell &Ryan, P.C. who has extensive experience representing shareholders in class actions and has successfully recovered hundreds of millions of dollars for defrauded investors and shareholders.

The reputation and expertise of the firm in shareholder and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex class action litigations.

Any member of the proposed Class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than sixty (60) days from January 7, 2000. Class members must meet certain legal requirements to serve as a lead plaintiff.

If you purchased Lucent common stock during the Class Period or have questions or information regarding this action or your rights, you may call or write:

CONTACT: Robert P. Frutkin, Esquire

Barbara A. Podell, Esquire

SAVETT FRUTKIN PODELL &RYAN, P.C.

325 Chestnut Street, Suite 700

Philadelphia, PA 19106

Telephone: (800) 993-3233

E-mail: sfprpc@op.net