Wolf Haldenstein Announces District Court Sustains Class Action Complaint
Against Compaq Computer Corp. - "Compaq" or the
"Company" -
NEW YORK--(BUSINESS WIRE)--Dec. 27, 1999--The following was released today by Wolf Haldenstein
Adler Freeman & Herz LLP:
Wolf Haldenstein Adler Freeman & Herz LLP announces that on December 22, 1999, the Honorable
Vanessa D. Gilmore of the United States District Court for the Southern District of Texas, sustained the
consolidated amended class action complaint (the ''Complaint'') filed by shareholders of Compaq
against the Company and certain of its present and former officers and directors, when it denied
defendants' motion to dismiss in its entirety.
The Complaint, brought on behalf of all purchasers of Compaq stock and options between July 10, 1997,
and March 6, 1998, charges Compaq and certain of its officers and directors with violations of sections
10(b) and 20(a) of the Securities Exchange Act of 1934. The Complaint alleges that defendants issued a
series of materially false and misleading statements concerning Compaq's financial results and the
success of its ODM build-to-order business. According to the Complaint, these statements falsely
omitted that defendants artificially inflated their results by channel stuffing and factoring receivables. The
Complaint also alleges that certain of the Company's senior executives sold over $120 million worth of
their own Compaq stock at artificially inflated prices during this time, and the plaintiffs assert a claim
under section 20A of the Exchange Act for unlawful insider trading as a result.
In response to Judge Gilmore's decision, Daniel W. Krasner, Senior Litigation Partner at Wolf
Haldenstein, one of plaintiffs' co-lead counsel, stated: ''We are obviously pleased with the Judge's
opinion. Shareholders have lost hundreds of millions of dollars due to defendants' misconduct and they
deserve to have their day in Court. We intend to prosecute this case vigorously on their behalf.'' Wolf
Haldenstein has extensive experience in the prosecution of securities class actions and derivative
litigation in state and federal trial and appellate courts across the country. Wolf Haldenstein's reputation
and expertise in shareholder and other class litigation has been repeatedly recognized by the courts,
which have appointed it to major positions in complex securities, multi-district and consolidated
litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler
Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800)
575-0735 (Michael Miske, Daniel W. Krasner, Esq., Michael Jaffe, Esq. or Neil L. Zola, Esq.), via e-mail
at classmember@whafh.com, whafh@aol.com, Jaffe@whafh.com, or through our website at
www.whafh.com .
All e-mail correspondence should make reference to Compaq.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP, New York
Michael Miske |
