COLCHESTER, Conn., March 4, 2005 (PRIMEZONE) -- Scott + Scott, LLC, which has filed a securities class action against Taser International, which entered into a contract for services with ChoicePoint Inc. (NYSE:CPS) on behalf of client shareholders, is investigating possible securities fraud by ChoicePoint Inc. (NYSE:CPS) which provides services for the stun gun manufacturer. ChoicePoint is a provider of identification and credential verification services. The Company maintains databases that contain 19 billion public records, including driving records, FBI lists, Social Security numbers and more which it then sells to entities that need conduct background checks on individuals. There is no link at this time that Taser had any role in the ChoicePoint matter.
You can reach attorney Neil Rothstein at nrothstein@scott-scott.com or at 800/404-7770 (EST), 800/332-2259 (PST) or 619/251-0887. Scott + Scott has offices in Connecticut, Ohio and California. The firm (http://www.scott-scott.com) specializes in complex litigation including securities fraud and represents foundations, individuals, corporations and pension funds worldwide. ChoicePoint Inc. is based in Georgia. Shareholders or other interested individuals may contact the firm's Connecticut office before 12 p.m. or later on the West Coast.
It was reported that on February 21, 2005, the database warehouse issued warning letters to certain residents in all 50 states, the District of Columbia and three U.S. Territories who may be affected by ChoicePoint's breach in its extensive database. It was just on January 31, 2005 when Taser announced that it had made a deal with ChoicePoint to perform background checks on all those purchasing Taser's devices, which safety is part of the central allegation of that shareholder lawsuit.
ChoicePoint Inc.'s top two executives made a combined $16.6 million in profit from selling company shares in the months after the data warehouser learned that people's personal information may have been compromised and before the breach was made public, regulatory filings show. Data collector ChoicePoint announced the Securities and Exchange Commission is investigating stock sales by its top two executives. The company also said it will stop selling personal information about consumers to small businesses.
The dual announcements were made Friday by the Alpharetta, Ga.-based company in a news statement and a regulatory filing. The SEC probe involves stock sales by chief executive Derek Smith and President Douglas Curling that resulted in a combined $16.6 million profit in the months after the company learned that its massive database had been breached but before the breach was made public.
ChoicePoint's stock has dropped almost 20% percent since just before the personal information breach at the data warehouser was announced on Feb. 15. The pattern and timing of the trading by Smith and Curling is a source of speculation as to motive, while ChoicePoint has said the stock trading was prearranged under a plan approved by the company's board. Either way, public shareholders did not have the benefit of this insider information that the two used to their advantage. The Company has revealed that both the Securities and Exchange Commission and the Federal Trade Commission have opened inquiries, said it would discontinue the sale of information products that contain sensitive consumer data, including Social Security and driver's license numbers, except where there is a specific consumer-driven transaction or benefit, or where the products support federal, state or local government and criminal justice purposes.
Scott + Scott, a Connecticut-based law firm with offices in Chagrin Falls, Ohio and San Diego, California, is a law firm with a national practice and reputation. The firm is currently litigating major securities, antitrust and employee retirement plan cases throughout the United States and represents pension funds, charities, foundations, individuals and other entities worldwide -- in both class and non-class cases. Scott + Scott dedicates itself to client communication and satisfaction. Please visit our website at http://www.scott-scott.com to learn more about the firm, its practice and other cases. If you wish to discuss this action with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein at nrothstein@scott-scott.com or by calling 800/404-7770 (EST) or 800-332-2259 (PST). You can dial direct in California at 619-233-4565.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.
Scott + Scott, LLC is based at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432. This release is issued in accordance with the applicable U.S. federal law.