Law Firm Lovell & Stewart Announces Securities Fraud Class Action Lawsuit Against AT&T Corp. Alleging Misstatements And Omissions Regarding Excite@Home

Business Wire, March 5, 2002

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--March 5, 2002

The law firm of Lovell & Stewart, LLP ((212) 608-1900 or www.lovellstewart.com) filed a class action lawsuit on March 5, 2002 on behalf of all persons who purchased, converted, exchanged or otherwise acquired the common stock of At Home Corp., d/b/a Excite@Home (formerly NasdaqNM:ATHM) between April 17, 2001 and August 28, 2001, inclusive.

The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the SEC thereunder and seeks to recover damages. Any member of the class may move the Court to be named lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than May 6, 2002.

The action, Leykin v. AT&T Corp., et al, is pending in the U.S. District Court for the Southern District of New York (500 Pearl Street, New York, New York), Docket No. 02-CV-1765 (RO) and has been assigned to the Hon. Richard Owen, U.S. District Judge. The complaint alleges that AT&T Corp.(NYSE:T) and certain current and former officers and directors of Excite@Home violated the federal securities laws by making misstatements regarding, and by failing to disclose adverse material facts regarding, Excite@Home's business and financial condition during the class period and also by virtue of their status as control persons of Excite@Home.

Specifically, the complaint alleges that defendants failed to disclose that Excite@Home was burning through its cash at a substantially higher rate than indicated in its filings with the SEC and in other public statements and that At Home had obtained $100 million worth of convertible note financing in June 2001 based on alleged misrepresentations that subjected the company to the threat of immediate claims that could put it into bankruptcy. The complaint further alleges that defendants affirmatively misrepresented the amount of cash that At Home would need to finance its ongoing operations for the calendar year 2001 by falsely stating in April 2001 that an additional $85 million in financing would be sufficient to meet Excite@Home's needs for cash during 2001. Despite obtaining a total of $185 million in new financing, the complaint alleges, on September 29, 2001, At Home announced that it would seek bankruptcy protection, and on October 23, 2001, At Home Corp.'s share price hit a 52-week low of four cents per share.

The complaint further alleges that defendant AT&T Corp., which at all relevant times held a 74% voting interest in Excite@Home, is liable for the foregoing under Section 20(a) of the Securities Exchange Act of 1934 based on its status as a control person of Excite@Home.

Christopher Lovell, the senior partner at Lovell & Stewart, has been appointed lead counsel or co-lead counsel in numerous significant class actions, including actions involving reportedly the largest class action recoveries in history under three separate federal statutes (the Sherman Antitrust Act, the Commodity Exchange Act, and the Investment Company Act of 1940). These record-breaking recoveries for class plaintiffs included the $1.027 billion recovery in In re: NASDAQ Market-Makers Antitrust Litigation and a $145.35 million recovery in 1999 in In re: Sumitomo Copper Litigation, a class action against various parties who conspired to manipulate the worldwide copper and copper futures markets for their own profit.

Investors who acquired the common stock of At Home Corp, d/b/a Excite@Home, during the period April 17, 2001 through August 28, 2001 inclusive may contact Lovell & Stewart at the telephone number, address or E-mail address below for more information regarding the class action lawsuit. Investors can also visit Lovell & Stewart's website at www.lovellstewart.com to view a copy of the complaint.