January 25, 1999
For
Immediate Release
Contact: Blair C. Fensterstock,
Esq. (212) 785-4100
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Over 88% of the Series I Preferred Stock shareholders of the bankrupt International Wireless Communications Holdings, Inc. ("IWCH") have commenced a lawsuit in New York against Vanguard Cellular Systems, Inc. (NASDAQ: VCELA), certain of its officers and directors including Board Chairman Haynes G. Griffin and Board Vice Chairman and Treasurer Stuart S. Richardson, and certain officers and directors of IWCH, for, among other things, fraud and violations of various state securities laws in connection with Vanguard's use of its control and dominance over IWCH to defraud certain IWCH shareholders. The lawsuit seeks $81 million in economic damages and at least $325 million in punitive damages.
The Series I Shareholders include Warburg Dillon Read LLC, BancBoston Investments, Inc. and Chase Latin American Equity Associates, Inc.
The suit alleges that Vanguard, which controlled and dominated IWCH through ownership of IWCH stock, interlocking boards of directors, and acting control of management, made materially false and misleading representations to shareholders of Radio Movital Digitas, Inc. ("RMD") to induce RMD shareholders to merge with IWCH and receive what was supposedly $81 million in IWCH stock. The shareholders allege Vanguard encouraged IWCH to misrepresent and grossly overstate IWCH's prospects for completing a purportedly imminent IPO; Vanguard provided RMD with misleading and false financial information regarding IWCH; and Vanguard, the largest independent cellular systems operator in the United States, promised to stand behind IWCH and support its growth. Prior to the merger, RMD had been a successful telecommunications company with substantial assets in Latin America.
The suit coincides with the merger of Vanguard into AT&T announced in September 1998 and scheduled to close in the first quarter of 1999.
For further information regarding the lawsuit, contact Blair C. Fensterstock, Esq., Fensterstock & Partners, LLP (212) 785-4100.