LITTLE ROCK, Ark., March 16, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Northern District of Illinois, Eastern Division on behalf of purchasers of the securities of Comdisco, Inc. ("Comdisco" or the "Company") (NYSE:CDO) during the period between January 25, 2000 and October 3, 2000, inclusive (the "Class Period").
The complaint charges Comdisco and certain officers and directors with violating federal securities laws by issuing a series of material misrepresentations between January 25, 2000 and October 3, 2000 concerning the Company's operations and its Prism Communications Services ("Prism") subsidiary. Specifically, the complaint alleges that defendants repeatedly issued positive statements concerning Prism, Prism's expansion into new markets and purported positive developments in Prism's existing markets but failed to disclose that Prism was suffering from a host of adverse factors including, but not limited to, that incumbent local exchange carriers were slow to provide Prism access to their networks and Prism was experiencing intense competition from entrenched telecommunications companies who were lowering prices in an effort to garner market share. Then, on October 3, 2000, Comdisco announced that it would stop funding Prism and would write down its investment in Prism, which amounted to $350 million. In response to this announcement, Comdisco's stock price dropped by 23% in one day, from $17.5625 per share to $13.37 per share (representing a 66% drop from the Class Period high of $53 per share, reached on March 9, 2000). Prior to the disclosure of the true facts about Prism, Comdisco insiders sold $10 million of their personally-held Comdisco stock and the Company completed a $500 million note offering on favorable terms.
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 9, 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 Client Relations Department: Sue Null, Charlie Gastineau or Jackie Addison 11311 Arcade Drive, Suite 200 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