CompuCredit Corporation Responds to Lawsuits.Business Editors ATLANTA--(BUSINESS WIRE)--Nov. 10, 2000 CompuCredit Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CCRT CCRT Core Conflictual Relationship Theme CCRT Conseil Canadien de la Réadaptation et du Travail (Canadian Council on Rehabilitation and Work) CCRT Cape Cod Rail Trail (Massachusetts, USA) ) responded today to the recently filed shareholder 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. . Chairman and Chief Executive Officer David Hanna stated the following: "I am entirely comfortable with our disclosures. The litigation is baseless, and we intend to defend it vigorously. We intend to pursue dismissal of the litigation at an early stage, but, even if it is not dismissed, the litigation should not be a significant distraction for the Company." The Company stated that the litigation is a classic example of the type of suit Congress sought to prevent in passing the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and . The Reform Act is designed to combat meritless securities suits, which are often based on nothing more than a drop in stock price. Congress also intended for the Reform Act to give companies targeted for such suits a better chance of obtaining dismissal at an early stage. That Congressional intent has led to a higher percentage of early dismissals. The company also explained that, although separate suits have been filed, the common practice is for all such cases to be consolidated into one proceeding, and it is expected that such consolidation will occur in this case. CompuCredit Corporation is a credit card company that uses analytical techniques An analytical technique is a method that is used to determine the concentration of a chemical compound or chemical element. There are a wide variety of techniques used for analysis, from simple weighing (gravimetric) to titrations (titrimetric)to very advanced techniques using , including sophisticated computer models, to identify consumers who it believes are credit-worthy and are overlooked by more traditional consumer credit providers. CompuCredit markets unsecured Aspire(R) Visa(R) credit cards through direct mail, telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. and the Internet. In July 1999, CompuCredit launched its consumer web site, www.aspirecard.com, through its Internet marketing See Internet advertising. services subsidiary AspireCard.com, Inc. Consumers can apply online and receive a credit decision within seconds. CompuCredit also markets credit life insurance, card registration, buying club memberships and travel services to its cardholders. Aspire Visa cards are issued by Columbus Bank and Trust Company under an agreement with CompuCredit. CompuCredit completed its initial public offering in April of 1999 and was included in the Russell 2000(R) Index in July 1999 and the NASDAQ FIN-100 Index in May 2000. The Company's expression of its views and expectations with respect to the litigation are forward looking statements, and actual results may differ materially from those suggested by such statements. The results may differ for a number of reasons, including (i) the uncertainty under current securities laws of the pleading Asking a court to grant relief. The formal presentation of claims and defenses by parties to a lawsuit. The specific papers by which the allegations of parties to a lawsuit are presented in proper form; specifically the complaint of a plaintiff and the answer of a defendant plus any and other requirements applicable to class action securities law claims, (ii) the uncertainty as to how the complaints in the litigation may be amended, and (iii) the difficulty inherent in predicting the outcome of litigation generally and securities class action litigation specifically. |
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