NEW YORK, Sept. 13, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of New York, civil action number 02-CV-7365, on behalf of all persons or entities who purchased or otherwise acquired securities of Exodus Communications, Inc. ("Exodus" or the "Company") (Nasdaq:EXDS) between December 8, 1999 through June 19, 2001, both dates inclusive (the "Class Period"). Merrill Lynch & Co. ("Merrill Lynch") and Henry Blodget are named as defendants in the complaint.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The complaint charges Merrill Lynch and Henry Blodget with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants Merrill Lynch and Blodget urged investors to purchase Exodus securities when defendants knew or recklessly disregarded that such purchases were not a good investment. The complaint alleges that defendants: issued "Buy" recommendations on Exodus securities without any rational economic basis; failed to disclose that they were issuing "Buy" recommendations to obtain investment banking business; and concealed significant, material conflicts of interest that prevented them from providing independent objective analysis. Between March 24, 2000 and September 26, 2001, Exodus stock dropped from approximately $173.32 per share to less than $1 dollar per share. During this time period, defendants repeatedly reiterated Near-Term Buy/Long-Term Buy recommendation. After the Nasdaq suspended trading in Exodus common stock on September 26, 2001, Exodus voluntarily de-listed from Nasdaq and filed for Chapter 11 bankruptcy shortly thereafter. Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Exodus common stock during the Class Period.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased or otherwise acquired Exodus Communications, Inc. securities during the Class Period described above, you may, no later than October 29, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.