A class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all those who sold Airtouch Communications, Inc. (NYSE:ATI) securities on January 4, 1999.
According to the complaint, Airtouch stock had recently been on the rise on reports that the company was involved "in off-again and on-again talks with a number of potential acquirors." On January 3, 1999, the company issued a press release stating that Airtouch was in late-stage negotiations with Bell Atlantic (NYSE:BEL) "that could lead to a possible business combination between the two companies." Led to believe that the bidding war over AirTouch was over almost before it had begun, AirTouch shareholders began a huge sell-off of their AirTouch shares, with the stock closing down over $4, at $68 1/16, on January 4, 1999. However, what the January 3 press release failed to mention was that another bidder, Vodafone, was also engaged in negotiating to acquire AirTouch. Specifically, as was reported two days later, Vodafone had approached AirTouch about a possible merger, offering more than $45 billion, topping the estimated value of Bell Atlantic's offer and setting the stage for a possible battle over AirTouch. Once Vodafone's interest in acquiring AirTouch was belatedly disclosed, the price of the Company's shares soared $9.25 to close at $77-1/2 on January 5, 1999.

Update

In December 2000, the court granted defendants' motion to dismiss the case.