LOS ANGELES, Aug. 2, 2002 (PRIMEZONE) -- On July 19, 2002, Glancy & Binkow LLP filed a class action complaint against Capital One Financial Corp. ("Capital One" or the "Company" ) (NYSE:COF) and certain of its senior officers on behalf of purchasers of Capital One securities between January 15, 2002 and July 16, 2002, inclusive (the "Class Period"). Glancy & Binkow LLP is continuing its investigation into Capital One's misconduct.
A copy of the complaint is available from the U.S. District Court for the Eastern District of Virginia or from Glancy & Binkow LLP. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
The Complaint charges Capital One and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of Capital One's business operations and earnings caused Capital One's stock price to become artificially inflated, inflicting damages on investors. The Complaint alleges that defendants failed to disclose that Capital One has a large percentage of "subprime" customers - borrowers with either poor credit histories or from low-income households. Capital One failed to maintain adequate loan loss reserves, thereby artificially inflating the Company's earnings and stock price. When it was revealed that federal regulators told the Company to increase its loan loss reserves and improve the technology that Capital One uses to provide loans and credit cards to subprime customers, the Company's stock price plummeted 39% in one day. The Complaint charges that defendants were in possession of materially adverse information about the Company's improper accounting practices but failed to disclose the information to investors, causing Capital One's stock price to become artificially inflated, inflicting damages on investors.
All persons who purchased securities of Capital One between January 15, 2002 and July 16, 2002, may move the Court not later than September 17, 2002, to serve as lead plaintiff, however, you must meet certain legal requirements.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.