Correct, that's an urban legend. Although I can understand why someone would believe the story to be true, due to LE incorrectly sending out the warning to others. http://www.snopes.com/crime/gangs/lightsout.asp
the old "bloods initiation weekend" emails were a good one, alot of people took them pretty seriously. It even circulated around people in england to. total Bullshit of course, but It would make for a good modern horror movie though.