The Emerson Firm Announces Class Action Lawsuit on Behalf of Investors of Exodus Communications, Inc. -- EXDS

Little Rock, Arkansas, UNITED STATES


HOUSTON, Sept. 19, 2002 (PRIMEZONE) -- The Emerson Firm, a securities class action trial law firm, announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Exodus Communications, Inc. ("Exodus" or the "Company") (Nasdaq:EXDS) common stock during the period between December 8, 1999 and June 19, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court or can be obtained by making a toll free call to the Firm's Investor Relations Department.

The complaint alleges that Merrill Lynch & Co., Inc. and Henry Blodget urged investors to purchase Exodus stock when defendants knew or recklessly disregarded that such purchases were not a good investment. The complaint alleges that defendants: issued "Buy" recommendations about Exodus 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, Merrill Lynch repeatedly reiterated its Near-Term Buy/Long-Term Buy recommendation. After the Nasdaq suspended trading in Exodus common stock on April 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.

If you bought Exodus common stock between December 8, 1999 and June 19, 2001, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than October 29, 2002. If you are a member of this class, you can join this class action by contacting the Investor Relations Department as indicated below. Any member of the purported class may move the Court to serve as lead plaintiff through The Emerson Firm or other counsel of their choice.

The Emerson Firm has significant experience prosecuting class actions on behalf of investors and litigation concerning corporate governance. The Firm has offices in both Houston and Little Rock, Arkansas, and represents investors throughout the country. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact the Investor Relations Department of The Emerson Firm by calling Ms. Tanya Autry toll free at (800) 663-9817 or by e-mail at the address below.


 THE EMERSON FIRM
 Investor Relations Department:
 Ms. Tanya Autry
 830 Apollo Lane
 Houston, Texas 77058
 Toll Free: 1-800-663-9817
 E-mail: tanya.autry@worldnet.att.net

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.



        

Contact Data