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Attention 3Com Corp. Shareholders.


ATLANTA--(BUSINESS WIRE)--June 1, 1999--

You are hereby notified that Chitwood & Harley has filed a securities class action in the United States District Court for the Northern District of California The United States District Court for the Northern District of California is the Federal district court whose jurisdiction comprises following counties: Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Mateo, Santa  on behalf of purchasers of 3Com Corp. ("3Com") (Nasdaq:COMS COMS 3Com Corporation (stock symbol)
COMS Certified Orientation and Mobility Specialist
COMS Continuous Opacity Monitoring Systems
COMS City of Manchester Stadium (UK) 
) common stock for the period between September 22, 1998 and March 2, 1999 (the "Class Period").

The complaint alleges that 3Com and certain of its officers and directors violated the Securities Exchange Act of 1934. The complaint alleges that beginning in September 1998, defendants made false and misleading statements regarding 3Com's business prospects and financial health.

More specifically, the complaint alleges that during 3Com's 1st and 2ndQ F99, 3Com's insiders used $130.4 million of 3Com's cash to repurchase 4.3 million 3Com shares on the open market in order to help manipulate and artificially inflate inflate - deflate  the stock so that 3Com insiders would be able to sell their own shares at much higher and more profitable prices. Due to these false and misleading statements 3Com's stock soared from as low as $23 1/8 on September 1, 1998 to as high as $51 1/8 on December 23, 1998. Moreover, the complaint alleges that from November 1998 through January 1999, 3Com's top insiders sold 4.2 million shares of their own 3Com stock at artificially inflated prices as high as $48.69 per share, reaping proceeds of roughly $189 million in unlawful insider sales.

In early February 1999, 3Com's stock fell sharply, falling from $47 1/4 to $30 9/16 upon rumors that Intel Corp. was gaining NIC (1) (Network Interface Card) See network adapter. See also InterNIC.

(2) (New Internet Computer) An earlier Linux-based computer from The New Internet Computer Company (NICC), Palo Alto, CA.
 market share from 3Com, and two 3Com distributors announced disappointing results. However, when 3Com assured analysts that its business model remained intact, and that it was on track to achieve 3rdQ F99 and 4thQ F99 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format.  consistent with its prior guidance, 3Com's stock stabilized and then recovered to as high as $35 9/16. However, on March 2, 1999, 3Com revealed that, due to weak sales of Systems Products, and particularly weak sales of Client Access Products, 3Com's 3rdQ F99 EPS, and its results going forward, would be substantially worse than earlier forecasted. 3Com's stock plummeted from $30 11/16 on March 1, 1999 to as low as $22 3/4 on March 3, 1999.

Plaintiff seeks to recover damages on behalf of all purchasers of 3Com common stock during the Class Period (the "Class"). Plaintiff is represented by Chitwood & Harley, an Atlanta law firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement mis·man·age  
tr.v. mis·man·aged, mis·man·ag·ing, mis·man·ag·es
To manage badly or carelessly.



mis·manage·ment n.
, as well as other complex litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
. Chitwood & Harley has been appointed lead counsel in several major actions pending in federal and state courts and has been instrumental in recovering millions of dollars on behalf of investors and shareholders.

Any member of the proposed Class who wishes to move the Court to serve as lead plaintiff of the Class must do so no later than June 12, 1999. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to discuss this action or if any questions concerning this notice or your rights with respect to this matter, you may contact: Corey D. Holzer, Esq., (888) 873-3999 (toll free) or by e-mail at mail@classlaw.com, CHITWOOD & HARLEY, 2900 Promenade II Promenade II is a 691-foot (211-meter) tall skyscraper in Midtown Atlanta. It has 40 stories of office space and its construction was completed in 1990. It is currently the seventh-tallest skyscraper in Atlanta. , 1230 Peachtree Street Peachtree Street is the main north-south street of Atlanta, Georgia. The city grew up around this one street, and many of its historical and municipal buildings are or were located along it. , N.E., Atlanta, Georgia 30309. Please visit our website at www.classlaw.com.
COPYRIGHT 1999 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Jun 1, 1999
Words:559
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