WASHINGTON, Oct. 29, 2002 (PRIMEZONE) -- The Law Office of Mark McNair has brought a securities class action lawsuit against Electronic Data Systems Corp. (NYSE:EDS). Although various Class Periods have been alleged, you may be a member of the Class if you acquired EDS securities between September 7, 1999 and September 24, 2002, inclusive ("the Class Period").
The deadline for filing a lead plaintiff motion is November 25, 2002. To serve as lead plaintiff, you must meet certain legal requirements. The lead plaintiff is a person or institution who acts on behalf of other class members in directing the litigation. The Law Office of Mark McNair recognizes that investors with significant losses often are uncertain about the class action process and are unclear whether they should take an active role in a case. The Law Office of Mark McNair would be happy to review your options with you.
If you have any questions, please contact Mark McNair at 1101 30th Street N.W., Suite 500, Washington, D.C, 20007 by telephone at (877) 511.4717 or (202) 872.4717, via e-mail at wmmcnair@justice4investors.com or visit our website www.justice4investors.com.
The Complaint alleges that the Company and certain of its officers and directors violated federal securities laws by issuing a series of materially false and misleading statements to the market and failing to disclose material facts about the Company's business. The Complaint alleges that during the Class Period, the Company issued numerous statements highlighting its strong financial performance, but did not disclose material facts about the Company's business. Specifically, the complaint alleges that the Company did not disclose: (1) its revenues were contingent on factors not in its control; (2) its overseas contracts were performing below expectations, and (3) it was recording and reporting receipts from contracts as assets even though the contracts were not yet fully recognized.
The facts began to come to light on September 18, 2002. On that day, EDS executives warned that a lack of new revenues would wipe out more than $0.60 per share of its Q3 earnings target of $0.74. Thereafter the price of EDS stock plummeted to a 52-week low of $20, down from a class period high of $72.45. After further revelations regarding EDS's put-option and other liabilities emerged in the wake of the foregoing disclosures, EDS's share price tumbled even further, reaching an intraday low of $10.09 before closing at $11.68 on September 24, 2002.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.