PHILADELPHIA, Aug. 15, 2002 (PRIMEZONE) -- On August 13, 2002, a class action lawsuit was filed by the Law Offices Bernard M. Gross, P.C. in the United States District Court for the Eastern District of Virginia, on behalf of all persons and entities who purchased or otherwise acquired the common stock of Capital One Financial Corporation (NYSE:COF) ("Capital One" or the "Company") between January 15, 2002 and July 16, 2002, inclusive (the "Class Period").
The action, numbered 02-CV-1200, is pending in the United States District Court, Eastern District of Virginia, located at 401 Courthouse St. Alexandria, VA 22314-5798, against defendants Capital One, Richard D. Fairbank, Nigel W. Morris, and David M. Willey. A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please visit our website at http://www.bernardmgross.com or contact us by phone at 866-561-3600 (toll free) or by E-mail at susang@bernardmgross.com.
The complaint charges Capital One, Richard D. Fairbank, Chairman and Chief Executive Officer, Nigel W. Morris, President, Chief Operating Officer and Director, and David M. Willey, Executive Vice President and Chief Financial Officer, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by issuing a series of materially false and misleading statements to the market during the Class Period. As alleged in the Complaint, throughout the Class Period, defendants issued highly positive statements concerning Capital One's earnings and operations. The press release failed to disclose that defendants were withholding material information about the true nature of Capital One's business operations and the percentage of high-risk customers in its portfolio. By failing to take adequate reserves to cover loan losses, defendants inflated the Company's earnings and thereby maintained Capital One's stock price at artificially inflated levels.
On July 16, 2002, the last day of the Class Period, defendants finally revealed that nearly forty percent (40%) of the Company's loans were made to high-risk borrowers. Additionally, the Company revealed on the same day that Capital One, as part of a memorandum of understanding ("MOU") with federal regulators, would need to increase the amount of its loss reserves. This news stunned investors, and one day later, on July 17, 2002, it caused a thirty-nine (39%) plunge in Capital One's stock price in a single day.
Law Offices Bernard M. Gross, P.C. has significant experience and expertise in prosecuting class actions and has recently filed cases in the following:
COMPANY SYMBOL PURCHASED DURING LEAD PLAINTIFF
CLASS PERIOD FILING DEADLINE
Amdocs Ltd DOX-NYSE 7/24/01-6/20/02 8/26/02
Aon AOC-NYSE 5/4/99-8/6/02 10/7/02
Corporation
Baxter BAX-NYSE 1/24/02-7/18/02 10/7/02
Int'l Inc.
Capital One COF-NYSE 1/15/00-7/16/02 9/17/02
Financial
Corporation
Citigroup, Inc. C-NYSE 7/24/99-7/23/02 9/23/02
Cross Media XMM-NYSE 11/5/01-7/11/02 9/16/02
Marketing
Corporation
Eclipsys ECLP-NASDAQ 7/23/01-6/27/02 9/27/02
Corporation
Flextronics FLEX-NASDAQ 10/20/01-6/4/02 8/19/02
Int'l Ltd.
Insight NSIT-NASDAQ 4/26/02-7/17/02 9/27/02
Enterprises, Inc.
Merck & Co. MRK-NYSE 7/1/99-6/21/02 8/30/02
Merrill Lynch MER-NYSE 3/9/00-4/11/02 8/30/02
& Co
PerkinElmer, Inc. PKI-NYSE 7/15/01-4/11/02 9/6/02
Touch America TAA-NYSE 1/30/01-11/14/02 8/26/02
f/k/a Montana
Power Company
Plaintiff seeks to recover damages on behalf of Class members and is represented by the law firm of Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you bought the common stock of Capital One Financial Corporation, between January 15, 2002 and July 16, 2002, you may, no later than September 17, 2002, 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 Notice or rights or interests with respect to these matters,
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C. Deborah R. Gross, Esquire Susan Gross, Esquire 1515 Locust Street, Second Floor Philadelphia, PA 19102
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca