BALA CYNWYD, Pa., Jan. 28, 2002 (PRIMEZONE) -- Shareholders of Optical Cable Corporation (Nasdaq:OCCF) ("Optical Cable" or the "Company") who desire to serve as a lead plaintiff in a shareholder class action lawsuit now pending in federal court in Virginia must submit an application with the Court by February 2, 2002 according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased Optical Cable Corporation securities between July 31, 2000 and October 8, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Optical Cable Corporation and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at www.sbclasslaw.com.
The complaint alleges that the Virginia-based Optical Cable Corporation and Robert Kopstein, the Company's president, chief executive officer and controlling shareholder issued materially false and misleading statements concerning the Company's financial condition. The complaint alleges that during the Class Period, defendants issued to the investing public false and misleading information that materially misstated the Company's condition and prospects, and failed to disclose material information necessary to make its prior statements not misleading. Specifically, the suit alleges that the Defendants made numerous positive statements as to the business and financial health of Optical Cable prior to and during the Class Period yet failed to disclose to the investing public Kopstein's use of his stock as collateral for margin loans with various brokerage accounts he maintained to speculate in technology stocks. Given Kopstein's control of 96% of the Company's common stock, his use of his Optical Cable stock as collateral created a significant risk that large numbers of these shares could be seized and sold on the open market by brokerage firms to cover Kopstein's trading losses. According to the complaint, Kopstein had been cautioned by at least one brokerage firm not to speculate by borrowing money against his Optical Cable stock to invest in other technology company securities. Kopstein's speculation in other technology companies' securities led to the margin calls which then resulted in significant losses to the plaintiffs when the brokerage firms seized Kopstein's Optical Cable stock and dumped millions of shares on the market at the same time, resulting in the severe depression of the Company's stock price.
If you purchased Optical Cable Corporation securities during the period July 31, 2000 and October 8, 2001, you may be a member of the class and have until February 2, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca