Haven't heard that one.
10:46 [COMS] 3COM HIT WITH SHAREHOLDER LAWSUIT ALLEGING FALSE Q1 RESULTS.
Shareholder Files Suit Against 3COM Corporation (COMS) and Certain Officers and
Directors Alleging Material Misstatements
PR Newswire - December 08, 1997 10:45
COMS %CPR V%PRN P%PRN
PHILADELPHIA, Dec. 8 /PRNewswire/ -- Counsel for Class Plaintiffs,
Barrack, Rodos & Bacine, today issued the following:
A class action has been commenced in the United States District Court for
the Northern District of California on behalf of purchasers of 3COM
Corporation ("3COM") (Nasdaq: COMS) common stock from May 19, 1997, to
November 6, 1997 (the "Class Period").
The Complaint alleges that defendants made false and misleading
statements, inter alia, about 3COM's acquisition of U.S. Robotics, the
Company's success in integrating U.S. Robotics' operations into 3COM's, and
the state of 3COM's inventories and the progress being made to reduce them.
The complaint also alleges that 3COM falsified its first quarter 1998
financial results for the period ending August 31, 1997, by artificially
inflating 3COM's revenues and earnings per share. In truth, 3COM's
acquisition of U.S. Robotics was a disaster in that U.S. Robotics had
accumulated millions of dollars of excessive inventories which could be sold
only at very low prices; there were serious problems in integrating U.S.
Robotics' operations with 3COM's; and 3COM was unable to reduce its
inventories. 3COM's earnings report for the first quarter of 1998 improperly
recognized revenue and failed to take required writedowns. The purpose for
these misstatements was to artificially inflate the price of 3COM stock from
$37 to a high of more than $59 so that 3COM insiders could sell more than
2.6 million shares of the stock for more than $130 million before the true
condition of 3COM would be discovered by investors. When the truth about 3COM
began to be revealed in November 1997, 3COM stock fell from $45 to $28.50, a
37% decline in just six trading days.
The plaintiffs seek to recover damages on behalf of all purchasers of 3COM
stock during the Class Period and is represented by, inter alia, the law firm
of Barrack, Rodos & Bacine, which has extensive experience in prosecuting
investor class actions. Barrack, Rodos & Bacine has prosecuted securities,
antitrust and consumer class actions for over 20 years from offices in
Philadelphia, San Diego, New York, Boston and New Jersey and has been
designated lead counsel by federal and state courts across the country in
large, complex cases. One Court has described the firm as "recognized
nationally to be a leading and skillful practitioner in the field of complex
class actions." For more information about Barrack, Rodos & Bacine, visit
their website at barrack.com.
If you are a member of the Class described above, you may, no later than
February 1, 1998, 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 any questions concerning this
case or your rights or interests, please contact the Shareholder Relations
Manager at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market
Street, Philadelphia, PA 19103, at 800-417-7305 or 215-963-0600, fax number
888-417-7306 or 215-963-0838 or by e-mail at BARRACK@ix.netcom.com.
SOURCE Barrack, Rodos & Bacine
/CONTACT: Counsel for Class Plaintiffs, Barrack, Rodos & Bacine,
Shareholder Relations Manager, 800-417-7305, or 215-963-0600, or fax
888-417-7306, or 215-963-0838, or e-mail, BARRACK@ix.netcom.com/
/Web site: barrack.com
(COMS) |
