Lockridge Grindal Nauen P.L.L.P. Announces Class Action Lawsuit Against Electronic Data Systems Corp.Business Editors & Legal WriterMINNEAPOLIS--(BUSINESS WIRE)--Oct. 16, 2002 Lockridge Grindal Nauen P.L.L.P. announced today that a class action has been filed in the United States District Court for the Eastern District of Texas The United States District Court for the Eastern District of Texas is the Federal district court with jurisdiction over the eastern part of Texas and is a part of the Fifth Circuit. The court's headquarters are in Tyler, Texas and has five subdivision offices. on behalf of purchasers of Electronic Data Systems Corp. ("EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. " or the "Company") (NYSE NYSE See: New York Stock Exchange :EDS) publicly traded securities during the period between September 7, 1999 and September 24, 2002, inclusive (the "Class Period"). The complaint charges EDS and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that defendants made misstatements of material facts and omitted material facts in their public statements and elsewhere, including (i) failing to disclose that EDS's backbone revenue from its Information Solutions IT outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. business is highly susceptible to interruption due to terms in EDS's service contracts that enable EDS customers to unilaterally u·ni·lat·er·al adj. 1. Of, on, relating to, involving, or affecting only one side: "a unilateral advantage in defense" New Republic. 2. suspend discretionary spending on IT outsourcing, (ii) affirmatively misrepresenting the predictability of EDS's future cash flows by touting touting the making of personal representations by a veterinarian to persons who are not clients in an attempt to solicit their business. the anticipated revenue that EDS would supposedly receive from its IT outsourcing service contracts with customers without disclosing that payments under such contracts were not guaranteed, and (iii) failing to disclose that EDS faced significant potential threats to its liquidity if its share price fell because of put-options and other obligations that ultimately obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. EDS to in effect buy back a total of 5.44 million share of EDS stock at fixed prices averaging over $60.00 per share. The complaint alleges that when Wall Street began to learn about the foregoing on September 18, 2002, after executives of EDS warned that a lack of new revenues would wipe out more than $0.60 per share of its Q3 earnings target of $0.74, the price of EDS stock plummeted to a 52-week low of $20, down from a class period high of $72.45. The complaint alleges that after further revelations regarding EDS's put-option and other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. emerged in the wake of the foregoing disclosures, EDS's share price tumbled even further, reaching an intra day low of $10.09 on September 24, 2002. Plaintiffs are represented by the law firm of Lockridge Grindal Nauen P.L.L.P. The firm has considerable experience in prosecuting securities class actions, has extensive experience representing shareholders in class actions, and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action 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. have been repeatedly recognized by courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. Lockridge Grindal Nauen P.L.L.P. has offices in Minneapolis and Washington, D.C. If you bought EDS publicly traded securities between September 7, 1999 and September 24, 2002, inclusive, and you wish to serve as lead plaintiff in this action, you must make a motion before the Court to be appointed lead plaintiff no later than November 25, 2002. Any member of the purported pur·port·ed adj. Assumed to be such; supposed: the purported author of the story. pur·port  ed·ly adv. class may move the Court to serve as lead plaintiff
through Lockridge Grindal Nauen or other counsel of their choice, or may
choose to do nothing and remain an absent class member.If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write: Karen M. Hanson, Esq. Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South Suite 2200 Minneapolis, MN 55401 (612) 339-6900 kmhanson@locklaw.com |
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