Schiffrin & Craig Ltd. Files Class Action Lawsuit Against
3Com Corp. and Certain Officers and Directors
12:02 p.m. Dec 08, 1997 Eastern
BALA CYNWYD, Pa.--(BUSINESS WIRE)--Dec. 8, 1997--Notice is hereby
given that a class action lawsuit was filed in the United States District Court for the
Northern District of California on behalf of all purchasers of 3Com Corp. ("3Com"
or the "Company") common stock between May 19, 1997 and Nov. 6, 1997
inclusive (the "Class Period").
The complaint charges 3Com and certain of its officers and directors with
violations of the federal securities laws.
The complaint alleges that during the Class Period, 3Com and several of its top
insiders (the "defendants") manipulated and artificially inflated the price of 3Com's
common stock by making a series of false and misleading statements about 3Com's
success in integrating U.S. Robotics' operations into 3Com's operations, demand
for 3Com's products and the state of 3Com's channel inventory.
These allegedly false statements artificially inflated the price of 3Com stock,
allowing 3Com's insiders to dispose of 2.6 million shares, for proceeds of over $131
million.
Five insiders sold 100% of their 3Com shares, seven sold 44%-88% of their 3Com
shares and four sold 10%-25% of their 3Com shares, all before the truth regarding
the severe problems with 3Com's disastrous U.S. Robotics merger, bloated channel
inventories and greatly diminished revenue and earnings prospects began to be
revealed and the price of 3Com stock dropped to as low as $28+ per share.
Plaintiffs seek to recover damages on behalf of all purchasers of 3Com common
stock during the Class Period (the "Class"). They are represented by several law
firms, including Schiffrin & Craig, Ltd., who have expertise in prosecuting investor
class actions and extensive experience in actions involving financial fraud.
Schiffrin & Craig Ltd. maintains offices in Bala Cynwyd, Pa., Buffalo Grove, Ill.
and Voorhees, N.J. and is active in major litigations pending in federal and state
courts throughout the United States. Schiffrin & Craig has taken a leading role in
numerous important actions on behalf of defrauded investors and is responsible for
a number of outstanding recoveries.
If you are a member of the class described above, you may, no later than 60 days
from Dec. 3, 1997, move the Court to serve as lead plaintiff of the Class, if you so
choose. In order to serve as lead plaintiff, however, you must meet certain legal
requirements.
If you wish to discuss this action or have questions concerning this notice or your
rights or interests with respect to these matters, please contact plaintiffs' counsel,
Schiffrin & Craig Ltd. (Andrew L. Barroway, Esq.), toll free at 1-888-299-7706 or
1-610-667-7706 or via e-mail at classlaw@ix.netcom.com . (See also:
businesswire.com)
This is the fourth suit in the last week
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