BALA CYNWYD, Pa., Oct. 2, 2002 (PRIMEZONE) -- A shareholder sued Exodus Communications, Inc. (EXDS) (Other OTC:EXDQE) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Southern District of New York and seeks damages for violations of federal securities laws on behalf of all investors who bought Exodus Communications, Inc. securities between December 8, 1999 and June 19, 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 Exodus Communications, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that Merrill Lynch & Co., Inc. and Henry Blodget urged investors to purchase Exodus stock when defendants knew or recklessly disregarded that such purchases were not a good investment. Specifically, the complaint alleges that defendants: issued "Buy" recommendations about Exodus without any rational economic basis; failed to disclose that they were issuing "Buy" recommendations to obtain investment banking business; and concealed significant, material conflicts of interest that prevented them from providing independent objective analysis. Between March 24, 2000 and September 26, 2001, Exodus stock dropped from approximately $173.32 per share to less than $1 dollar per share. During this time period, Merrill Lynch repeatedly reiterated its Near-Term Buy/Long-Term Buy recommendation. After the Nasdaq suspended trading in Exodus common stock on April 26, 2001, Exodus voluntarily de-listed from Nasdaq and filed for Chapter 11 bankruptcy shortly thereafter. Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Exodus common stock during the Class Period.
If you purchased Exodus Communications, Inc. securities between December 8, 1999 and June 19, 2001 you may be a member of the class and have until October 29, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway 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