Good some companies fight back
Monday January 29, 6:40 pm Eastern Time
Press Release
3Com Wins Class Action Shareholder Lawsuit
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 29, 2001--3Com Corporation (Nasdaq:COMS - news) today announced it won summary judgment dismissing shareholder class actions that were set to go to trial in Santa Clara County Superior Court, Hirsch v. 3Com Corporation (Civil Action No. CV764977) and Kravitz v. 3Com Corporation (Civil Action No. CV765962).
In these class actions, the plaintiffs sued over a drop in 3Com's stock price on Feb. 10, 1997. On that day 3Com
announced it matched a price cut on Fast Ethernet network interface cards that Intel Corp. announced five days before.
In the ruling, Judge Conrad L. Rushing, the judge in charge of the Complex Case Division of the Santa Clara County
Superior Court, rejected every element of plaintiffs' allegations. After reviewing an extensive factual record submitted by the parties, Judge Rushing found the plaintiffs had no evidence of misconduct that entitled them to try their claims before a jury.
``We are gratified by Judge Rushing's decision,'' said Mark Michael, senior vice president and corporate counsel for
3Com. ``Companies in Silicon Valley are often under great pressure to settle shareholder class actions, even when they
are meritless. We hope Judge Rushing's decision gives other companies the courage to fight these lawsuits.''
These class actions were brought on behalf of purchasers of 3Com stock between Sept. 24, 1996 and Feb. 10, 1997.
3Com previously won a related federal court class action, based on the same allegations. That lawsuit was dismissed
with prejudice by United States District Judge Charles R. Breyer.
3Com was represented in the litigation by Wilson Sonsini Goodrich and Rosati, of Palo Alto, Calif., and Boies Schiller
and Flexner, of Armonk, N.Y |
