To: Gary Korn who wrote (27782 ) 12/12/1997 8:58:00 PM From: Glenn D. Rudolph Read Replies (2) | Respond to
It seems there is a class action suti against every company in which I had a position this year. Are all company directors really crooks or do we have some money hungry lawyers?
Wechsler Harwood Halebian & Feffer LLP File Class Action; Action Against Western Digital Corporation
Business Wire - December 12, 1997 20:22
%WECHSLER-HARWOOD WDC %NEW-YORK %BANKING %COMPUTERS %ELECTRONICS %COMED V%BW P%BW
NEW YORK--(BUSINESS WIRE)--Dec. 12, 1997--Notice is hereby given that on December 12, 1997, a securities class action lawsuit was filed in the United States District Court for the Central District of California against Western Digital Corporation ("Western Digital" or the "Company") (NYSE: WDC) and certain officers and directors of the Company on behalf of purchasers of Western Digital common stock during the period December 28, 1996 through December 2, 1997, inclusive (the "Class Period"). The complaint alleges that defendants violated the federal securities laws (Sections 10(b) and 20(a) of the Securities Exchange Act of 1934) by misrepresenting or failing to disclose material information about Western Digital's financial results, operations, customers, and future prospects. The complaint alleges that defendants issued false and misleading press releases and financial statements for 1996 and 1997 and improperly deferred the write down of its obsolete computer hard drive inventory. As a result of defendants' false and misleading statements and material omissions, the price of Western Digital's stock was substantially artificially inflated during the Class Period, such that persons who purchased common stock during the Class Period were damaged by overpaying for the stock. The complaint also alleges that high-ranking Western Digital insiders disposed of thousands of shares of their individual holdings of Western Digital stock during the Class Period at artificially inflated prices, netting themselves millions of dollars in proceeds from the sales. At the end of the Class Period, when the Company announced its intention to take charges to write down certain inventories of as much as $95 million, the price of Western Digital stock plummeted approximately 10% from the previous day's closing price and down from a Class Period high of $54 per share to $19.38 a share. The Plaintiffs seek to recover damages on their own behalf and on behalf of all purchasers of Western Digital's common stock. They are represented in
this class action by the New York law firms of Wechsler Harwood Halebian & Feffer LLP (www.whhf.com), which has extensive experience representing shareholders in class actions and has served as lead counsel on behalf of shareholders in many such actions. The firm's reputation and expertise in shareholder and other class actions have repeatedly been recognized by the courts. If you are a member of the class described above, you may, not later than 60 days from the date of this notice, move the court to order to serve as a lead plaintiff, provided you meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Gary P. Weinstein, Esq., or Frederick W. Gerkens, III, Esq. at Wechsler Harwood Halebian & Feffer LLP, 488 Madison Avenue, New York, New York 10022, by calling (212) 935-7400.
CONTACT: Wechsler Harwood Halebian & Feffer LLP, New York
Gary P. Weinstein, Esq.
or Frederick W. Gerkens, III, Esq.
212/935-7400.
