BALA CYNWYD, Pa., Oct. 14, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Southern District of New York (02-CV-7022) claims that Merrill Lynch & Co., Inc. and Henry Blodget misled shareholders about Exodus Communications, Inc.'s business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought Exodus Communications, Inc. securities between December 8, 1999 and June 19, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Exodus Communications, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the New York-based 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. Specifically, 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 purchased Exodus Communications, Inc. securities between December 8, 1999 and June 19, 2001, you may be a member of the class and have until October 29, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca