NEW YORK, Dec. 11, 2003 (PRIMEZONE) -- On December 8, 2003 the law firm of Wechsler Harwood LLP (http://www.whesq.com) filed a class action suit against the Nasdaq Stock Market Inc. ("Nasdaq") and its President and CEO (collectively, the "Defendants") in the United States District Court for the Southern District of New York, 03-CV-09730, on behalf of all persons who traded the stock of Corinthian Colleges, Inc. (Nasdaq:COCO) between 10:46 a.m. and approximately 12:30 p.m. on December 5, 2003 (the "Class Period").
The complaint alleges that the Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5. Beginning at approximately 10:46 a.m. on December 5, 2003, the market price of COCO fell precipitously from $57.45 to as low as $38.97 per share within 12 minutes. At 10:58 a.m., Nasdaq halted trading in COCO, stating that the plunge was caused by "misuse or malfunction" of an electronic trading system. Nasdaq permitted trading to resume approximately one hour later at 11:55 a.m. When COCO reopened at 11:55 a.m., the price of the stock recovered quickly. Approximately 30 minutes after trading in COCO resumed, Nasdaq belatedly announced that it would cancel all trades in COCO made between 10:46 a.m. and 10:58:08 a.m.
At no time prior to approximately 12:30 p.m. did Nasdaq inform investors that it would cancel all trades in COCO between 10:46 a.m. and 10:58:08 a.m. Therefore, during the period between the time COCO resumed trading at 11:55 a.m. and the time Nasdaq announced the cancellation of such trades at approximately 12:30 p.m., investors made trading decisions in reliance on Nasdaq's statement that trading had resumed and without knowing that Nasdaq had decided to cancel the trades between 10:46 a.m. and 10:58:08 a.m. Nasdaq's belated cancellation of such trades caused injury to investors who traded COCO securities between 10:46 a.m. and approximately 12:30 p.m. on December 5, 2003.
If you traded COCO securities during the Class Period, you may move for appointment as Lead Plaintiff on or before February 9, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine 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 the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood, which has extensive experience in prosecuting investor class actions involving financial fraud, has prosecuted securities, antitrust and consumer class actions for over 10 years. For more information about Wechsler Harwood LLP, please visit its website at www.whesq.com.
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
David Leifer, Wechsler Harwood Shareholder Relations Department: dleifer@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca