CLEVELAND, Jan. 6, 2004 (PRIMEZONE) -- Landskroner Grieco, Ltd. announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of all persons who traded the stock of Corinthian Colleges, Inc. (Nasdaq:COCO) ("Corinthian" or the "Company") (the "Class") between 10:46 a.m. and approximately 12:30 p.m. on December 5, 2003 (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or you can obtain it by contacting Jack Landskroner or Debra Spaller at Landskroner Grieco, Ltd. by calling toll-free at 866-522-9500 or by emailing jack@landskronerlaw.com.
The action is pending in the United States District Court for the Southern District of New York, against defendants Nasdaq Stock Market Inc. and its president and CEO Robert Greifeld. According to the complaint, defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5.
The complaint alleges that beginning at approximately 10:46 a.m. on December 5, 2003, the market price of COCO fell precipitously from $57.45 to as low as $38.97 per share within 12 minutes. At 10:58 a.m., Nasdaq halted trading in COCO, stating that the plunge was caused by "misuse or malfunction" of an electronic trading system. Nasdaq permitted trading to resume approximately one hour later at 11:55 a.m. When COCO reopened at 11:55 a.m., the price of the stock recovered quickly. Approximately 30 minutes after trading in COCO resumed, Nasdaq belatedly announced that it would cancel all trades in COCO made between 10:46 a.m. and 10:58:08 a.m.
At no time prior to approximately 12:30 p.m. did Nasdaq inform investors that it would cancel all trades in COCO between 10:46 a.m. and 10:58:08 a.m. Therefore, during the period between the time COCO resumed trading at 11:55 a.m. and the time Nasdaq announced the cancellation of such trades at approximately 12:30 p.m., investors made trading decisions in reliance on Nasdaq's statement that trading had resumed and without knowing that Nasdaq had decided to cancel the trades between 10:46 a.m. and 10:58:08 a.m. Nasdaq's belated cancellation of such trades caused injury to investors who traded COCO securities between 10:46 a.m. and approximately 12:30 p.m. on December 5, 2003. Investors who had their purchases canceled and who sold shares after trading resumed were forced to buy shares at inflated prices to cover their sell orders, turning their profits into losses through no fault of their own.
Plaintiff seeks to recover damages on behalf of all those who traded the stock of Corinthian between 10:46 a.m. and approximately 12:30 p.m. on December 5, 2003. If you traded the stock of Corinthian between 10:46 a.m. and approximately 12:30 p.m. on December 5, 2003, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than February 9, 2004.
Landskroner Grieco, Ltd. is a law firm involved in the prosecution of securities class actions and derivative litigation in state and federal courts across the country. Jack Landskroner is a trial advocate board certified by the National Board of Trial Advocacy.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca