PHILADELPHIA, March 15, 2001 (PRIMEZONE) -- Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following:
A class action has been commenced in the United States District Court for the Northern District of Illinois, Eastern Division, on behalf of all persons who purchased the securities of Comdisco, Inc. (NYSE:CDO) ("Comdisco" or the "Company") between November 3, 1999, and October 3, 2000, inclusive (the "Class Period"), including senior notes purchased during the Class Period.
To sign up online: http://www.barrack.com/NewCases/NewCases.htm.
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing a series of material misrepresentations about the Company's operations, and its Prism Communications Services ("Prism") subsidiary. Specifically, the complaint alleges that defendants repeatedly issued positive statements concerning Prism, Prism's expansion into new markets and purported positive developments in Prism's existing markets, but failed to disclose that Prism was suffering from a host of adverse factors, including, but not limited to, that incumbent local exchange carriers were slow to provide Prism access to their networks and Prism was experiencing intense competition from entrenched telecommunications companies who were lowering prices in an effort to garner market share. Then, on October 3, 2000, Comdisco announced that it would stop funding Prism and would write down its investment in Prism, which amounted to $350 million. In response to this announcement, Comdisco's stock price dropped by 23% in one day, from $17.5625 per share to $13.37 per share (representing a 66% drop from the Class Period high of $53 per share, reached on March 9, 2000) and three well respected credit rating agencies downgraded the notes. Prior to the disclosure of the true facts about Prism, Comdisco insiders sold $10 million of their personally-held Comdisco stock and the Company completed a $500 million note offering on favorable terms.
The plaintiff seeks to recover damages on behalf of all purchasers of Comdisco securities during the Class Period, including those who purchased senior notes. He is represented by the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions involving financial fraud. Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years. The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey and has been designated lead counsel by federal and state courts across the country in large, complex securities class actions, including those against Cendant Corp. (the largest securities class action in United States history), McKesson HBOC, Inc., Informix Corporation, Sunbeam Corporation and hundreds of others. For more information about Barrack, Rodos & Bacine, please visit their Website at www.barrack.com.
If you are a member of the Class described above, you may, no later than April 9, 2001, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this case or your rights or interests, please contact Maxine S. Goldman, Shareholder Relations Manager, at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, at 800-417-7305 or 215-963-0600, fax number 888-417-7306 or 215-963-0838 or by e-mail at msgoldman@barrack.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca