ATLANTA, Oct. 4, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit has been filed in the United States District Court for the Eastern District of Texas on behalf of all persons who purchased or otherwise acquired the securities of Electronic Data Systems Corporation ("EDS" or the "Company") (NYSE:EDS) between April 19, 2002 and September 24, 2002, inclusive (the "Class Period").
The complaint charges EDS and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that during the Class Period, defendants misled their investors by issuing false and misleading statements and failing to disclose material facts about the Company's business, and claims defendants misrepresented the truth about, inter alia, EDS's operations and financial condition and as a result, the price of EDS securities was artificially inflated during the Class Period.
During the Class Period, the complaint asserts that defendants issued numerous statements highlighting the Company's strong financial performance despite the fact that its revenues were contingent on factors not in the Company's control, that overseas contracts were performing below expectations, and that the Company was recording and reporting receipts from contracts as assets even though the contracts were not yet fully recognized. When Wall Street began to learn about the foregoing on September 18, 2002 after executives of EDS warned that a lack of new revenues would wipe out more than $0.60 per share of its Q3 earnings target of $0.74, the price of EDS stock plummeted to a 52-week low of $20, down from a class period high of $72.45. After further revelations regarding EDS's put-option and other liabilities emerged in the wake of the foregoing disclosures, EDS's share price tumbled even further, reaching an intraday low of $10.09 before closing at $11.68 on September 24, 2002.
If you purchased EDS securities during the Class Period, you may join in the action and/or move for appointment as lead plaintiff. Any member of the proposed class who wishes to move the Court to serve as lead plaintiff must do so no later than November 25, 2002. In order to serve as lead plaintiff, you must meet certain legal requirements.
Plaintiff is represented by Chitwood & Harley, a law firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States in both federal and state courts and has been instrumental in recovering billions of dollars on behalf of its clients.
If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Nikole Davenport at 1-888-873-3999 (toll-free) or by e-mail at nmd@classlaw.com, CHITWOOD & HARLEY, 2300 Promenade II, 1230 Peachtree Street, N.E., Atlanta, Georgia 30309. For more information about Chitwood & Harley, please visit our website at www.classlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca