NEW YORK, Sept. 10, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood LLP ("Wechsler Harwood") filed a class action lawsuit on July 25 , 2002 on behalf of all persons who purchased or acquired the common stock of American Express Company ("American Express" or the "Company") (NYSE:AXP) between July 18, 1999 and July 17, 2001, inclusive (the "Class Period") in the United States 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 September 16, 2002. In order to be appointed lead plaintiff, the Court must determine, among other things, that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by whether or not you serve as a lead plaintiff.
Specifically, the complaint alleges that American Express and certain of its officers and directors made misstatements and omissions of material fact, including failing to disclose that American Express was investing in a risky portfolio of high-yield or "junk" bonds with ratings as low as "single-B" that carried the potential for substantial losses if default rates in the junk bond market increased, failing to disclose the true extent of American Express's total exposure as a result of the foregoing after American Express wrote down $182 million of its junk bond portfolio in April 2001, and failing to disclose that American Express was taking a substantial and unnecessary risk by investing in high-yield securities involving complex risk factors that American Express management and personnel did not fully comprehend.
The complaint further alleges that after the full truth regarding American Express's unnecessarily risky and imprudent investment strategy began to become known to the market on July 18, 2001 when American Express announced a surprise charge against earnings of $826 million, its third consecutive write-down of high-yield or "junk" bonds, American Express stock traded as low as $37.17, down from a class period high of over $62.00.
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 LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Ramon Pinion, Wechsler Harwood Shareholder Relations Department: rpinioniv@whhf.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca