NEW YORK, June 18, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood Halebian & Feffer filed a class action lawsuit on June 18, 2002 on behalf of all persons who acquired the common stock of Perot Systems Corp. (NYSE:PER) between February 2, 1999 and June 7, 2002, inclusive, in U.S. District Court for the Southern District of New York.
The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the SEC thereunder and seeks to recover damages. Any member of the class may move the Court to be named lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than August 12, 2002.
Specifically, the complaint alleges that defendants omitted to disclose crucial facts regarding risky business practices engaged in by Perot Systems in order to obtain new consulting business and generate additional revenues. These crucial facts included Perot Systems' disclosure of crucial proprietary information regarding the architecture of California's power grid that could be used to cause artificial congestion on such grid to power-trader Reliant, thereby causing Perot Systems to face substantial potential legal liability by virtue of the possibility that its improper disclosures of proprietary information enabled power traders to exploit such weaknesses for their own profit, and that Perot Systems did not have in place sufficient management controls to prevent its personnel from using confidential information obtained in the course of its consulting work as a selling point in trying to obtain lucrative consulting business.
The complaint further alleges that when Wall Street learned about the foregoing after California State Sen. Joseph Dunn unearthed a Perot Systems sales presentation mapping out strategies to exploit weaknesses and loopholes in the California power grid, Perot Systems' stock tumbled 19% on June 5, 2002 and an additional 11.3% to close at $12.90 on June 6, 2002, down from its class period high of $85.75.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whhf.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Patricia Guiteau, Wechsler Harwood Shareholder Relations Department: pguiteau@whhf.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca