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KPMG PEAT MARWICK ISSUES COMPTRONIX PRESS STATEMENT

 NEW YORK, April 23 /PRNewswire/ -- Class action plaintiffs in the Comptronix securities litigation today announced a proposed settlement with KPMG Peat Marwick, Comptronix' former auditors, and with Morgan Keegan & Company, Inc., The Robinson-Humphrey Company, Inc. and Stephens, Inc., underwriters for a Comptronix debenture offering. This settlement resolves all outstanding litigation against these defendants. The auditors and the underwriters will pay a total of $10.5 million cash into an escrow account for the class. The action is pending before Judge Robert B. Propst in the United States District Court for the Northern District of Alabama. The settlement is subject to court's approval.
 Claims made by the plaintiffs alleged reckless and substandard audits and failure to detect fraud by the auditors and failure to perform adequate due diligence by the underwriters in connection with the debenture offering. The auditors and underwriters denied these allegations and denied any wrongdoing but agreed to settle to minimize the extraordinary time and expense they would incur in the litigation process.
 Previously, class plaintiffs reached settlement agreements with Comptronix, its continuing directors and officers and with one of the three former senior management members who have admitted complicity in the fraud totaling in excess of $15 million of cash, new preferred stock and other considerations. Remaining defendants include William Hebding and Allen Shifflett, the former CEO and former president of Comptronix.
 The class action plaintiffs are being represented in the litigation by David Guin of Ritchie & Rediker, P.C. and Daniel Berger of the New York firm of Bernstein Litowitz Berger & Grossmann.
 -0- 4/23/93
 /CONTACT: Barbara A. Kraft of KPMG Peat Marwick, 212-909-5266/


CO: KPMG Peat Marwick; Comptronix ST: New York IN: SU:

WB-TS -- NY099 -- 0290 04/23/93 17:25 EDT
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Publication:PR Newswire
Date:Apr 23, 1993
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