LITTLE ROCK, Ark., March 23, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it has filed a class action in the United States District Court for the District of Connecticut on behalf of all individuals and institutional investors that purchased the common stock of Xerox Corporation ("Xerox" or the "Company") (NYSE:XRX) between February 15, 1998 and February 6, 2001, inclusive (the "Class Period").
The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by reporting false financial results during the class period and failing to adhere to the standard accounting practices the company claimed to follow. Specifically, the complaint alleges that Xerox improperly recognized revenues from its leasing operations by booking up front those lease payments attributable to future supplies and services, boosted short-term results by overstating the value of future payments from leases originated in developing countries, and failed to write off mounting bad debts and improperly classifying transactions in its Mexico operations, which resulted in $119 million in charges in the second and third quarters of fiscal 2000.
On June 16, 2000, Xerox issued a statement about the "irregularities" in Mexico, falsely portraying them as an aberration perpetrated by rogue executives. But on February 6, 2001, a Wall Street Journal article reported allegations of accounting fraud that went far beyond Mexico. Meanwhile, Xerox shares fell from as high as $124 a share during the Class Period to just $4.43 a share, resulting in hundreds of millions of dollars in losses to Class members. The company's accounting practices are now the subject of a Securities and Exchange Commission (SEC) investigation.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by April 16, 2001. You are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP
Sue Null, Charlie Gastineau or Jackie Addison
P.O. Box 25438
Little Rock, AR 72221
Toll Free: 1-888-551-9944
E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca