The International Brotherhood of Teamsters Local 854 Fund has initiated a class action lawsuit against Williams Companies Inc. and its spun-off communications company, as well as certain key officers and directors, in federal court in Oklahoma for providing false and misleading financial statements and press releases to investors.

The lawsuit was brought on behalf of all purchasers of Williams and Williams Communications Group (WCG) securities during the class period between July 24, 2000 and Jan. 29, 2002. It specifically alleges that the companies violated the disclosure requirements of the Securities Exchange Act of 1934.

Williams stock fell to $18.71 per share from $24 a share, and the already-depressed WCG common stock plunged to $1.30 a share, following the integrated energy company’s announcement on Jan. 29 that it would delay the release of its 2001 earnings “pending an internal assessment of [its] contingent obligations to Williams Communications,” noted the New York law firm of Schoengold & Sporn P.C., which represents the Teamsters Pension Fund. Williams said extra time was needed to estimate its “ultimate obligation related to WCG’s $1.4 billion debt and network lease agreement covering assets that cost $750 million.”

Parties who purchased or sold Williams or WCG securities during the class period at a loss or still hold them are eligible to join the Teamsters Pension Fund’s lawsuit to pursue claims. Interested parties should contact Shoengold & Sporn at the toll free phone number of (866) 348-7700, or via e-mail at shareholderrelations@spornlaw.com, before April 1, 2002.

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