BALA CYNWYD, Pa., July 11, 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 Northern District of Texas-Dallas Division claims that Perot Systems Corp. (NYSE:PER) misled shareholders about its business and financial condition.
Plaintiff seeks damages for violations of Sections10(b) and 20(a) the Securities Exchange Act of 1934 on behalf of all investors who Perot Systems Corp. securities between February 2, 1999 through June 7, 2002 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 Perot Systems Corp. 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 Texas-based Perot Systems Corp. omitted to disclose crucial facts regarding risky business practices in which Perot Systems was engaged in order to try to obtain new consulting business and generate additional revenues. Specifically, the complaint alleges that Perot Systems had disclosed crucial proprietary information regarding the architecture of California's power grid that could be used to cause artificial congestion on the system to power trader Reliant, that Perot Systems faces substantial potential legal liability due to the possibility that its improper disclosures of proprietary information enabled power traders to exploit such weaknesses in California's power grid for their own profit, and that Perot Systems did not have in place sufficient management controls to prevent its personnel from using confidential information obtained in the course of its consulting work as a selling point in trying to obtain lucrative consulting business.
The complaint further alleges that when Wall Street learned of these practices after California State Sen. Joseph Dunn unearthed a Perot Systems sales presentation mapping out strategies to exploit weaknesses and loopholes in the California power grid, Perot Systems' stock tumbled 19% on June 5, 2002 and an additional 11.3% to close at $12.90 on June 6, 2002, down from its class period high of $85.75.
If you purchased Perot Systems Corp. securities between February 2, 1999 through June 7, 2002, you may be a member of the class and have until August 12, 2002 to move to 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.