ATLANTA, July 30, 2002 (PRIMEZONE) -- Holzer & Holzer announced today that it has filed a class action in the United States District Court for the Eastern District of Virginia, Alexandria Division, on behalf of purchasers of Capital One Financial Corp. ("Capital One" or the "Company") (NYSE:COF) securities between January 15, 2002 and July 16, 2002, inclusive (the "Class Period"). A copy of the complaint filed is available from the Court or by contacting Holzer & Holzer (toll-free) at (888) 508-6832 or by sending an e-mail to michaelfisteljr@msn.com.
The complaint alleges that defendants' violated the federal securities laws by issuing a series of materially false and misleading statements to the market during the Class Period. As alleged in the complaint, Capital One issued numerous press releases regarding its performance during the Class Period which represented that the Company was experiencing quarter after quarter of record earnings and revenue growth while maintaining "stringent risk management practices" and adequate loan loss reserves. The complaint further alleges that these, and other, representations were materially false and misleading because they failed to disclose that Capital One was in violation of federal guidelines regarding adequate levels of capitalization and loan loss reserves and that it was not effectively managing its rapid growth. On July 16, 2002, Capital One revealed that it had entered into an agreement with regulators, which required Capital One to boost reserves by $247 million in the second quarter of 2002, tie-up additional capital and institute infrastructure reforms in order to deal adequately with its high rate of growth, especially in the subprime market. In reaction to the announcement, Capital One's stock plummeted by 39%, falling from a $50.60 per share close on July 16 to $30.48 per share by the close of July 17, on extremely heavy trading volume. During the Class Period, as alleged in the complaint, Capital One insiders profited by selling a total of over $8.2 million in Capital One common stock at artificially inflated prices and the Company undertook a convertible debt offering for $650 million on April 19, 2002.
If you bought the securities of Capital One during the Class Period, you may, no later than September 17, 2002, move the Court to serve as a lead plaintiff in the action. In order to serve as a lead plaintiff, however, you must meet certain legal requirements. If you have any questions about your rights with respect to this lawsuit, you may contact Holzer & Holzer, Michael I. Fistel, Jr., Esq. (toll-free) at (888) 508-6832, or inquire via e-mail to michaelfisteljr@msn.com.
Holzer & Holzer has substantial experience representing investors in securities fraud class action lawsuits such as this. Holzer & Holzer is located in Atlanta, GA, but represents investors in securities class action lawsuits 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 are encouraged to call the Firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca