Level 3 Communications, Inc.

Class Period: Feb 8, 2007 to Oct 23, 2007

Lead Plaintiff Deadline: Apr 6, 2009 + Deadline passed

Summary of Case:

A securities class action has been filed against Level 3 Communications, Inc. (Ticker: LVLT) ("Level 3" or the "Company") on behalf of all common stock purchasers from February 8, 2007 through October 23, 2007 (Class Period) in the United States District Court for the District of Colorado.  The deadline to file for lead plaintiff is April 6, 2009.

The complaint alleges that throughout the Class Period, defendants knew or recklessly disregarded that their public statements concerning Level 3's business, operations and prospects were materially false and misleading. Specifically, defendants' public statements were false and misleading or failed to disclose or indicate that: (1) the Company's efforts to integrate the numerous acquired companies were not going well; (2) specifically, the Company was experiencing an increase in service activation times, which was negatively impacting the Company's service installation intervals and rate of revenue growth; (3) the Company was also experiencing challenges in its service management processes that were resulting in longer response times to resolve customers' network service issues; (4) steps taken by the Company to remedy the problems were not working, and actually were further complicating the issues and making them worse; (5) as a result of the above, the Company did not have adequate provisioning capability to convert its increasing sales, or signed orders, into revenue generating service; (6) the Company lacked adequate internal controls; and (7), as a result of the above, the statements made by the Company and management during the Class Period lacked a reasonable basis.  

On October 23, 2007, Level 3 shocked the market when it revealed that the Company was having extensive difficulties integrating the systems and customer-service processes of the numerous companies it had acquired, and these difficulties were causing an increase in service activation times. Moreover, Level 3 revised downward the Company's previously issued guidance for fourth quarter 2007 and full year 2008. On this news, shares of Level 3 declined $1.04 per share, or approximately 24%, to close on October 23, 2007 at $3.28 per share, on unusually heavy trading volume.

If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.