Securities Class Action Lawsuits Filed Against Bank One Corp., Xerox Corporation, Tyco International Ltd., and Campbell Soup Company

Strategic Insights -

Investors who purchased or acquired stock of four major companies between specific dates in the late 1990s may be entitled to participate in class action lawsuits. The cases, filed by the law firm Schatz & Nobel, P.C., allege that the companies and their officers engaged in various forms of securities fraud, including inflating financial results, overstating revenue and income, and concealing declining demand for products.

The lawsuits were filed against Bank One Corp., Xerox Corporation, Tyco International Ltd., and Campbell Soup Company. The cases allege that the companies and their officers engaged in deceptive practices to artificially inflate the price of their stock.

Key Takeaways:

  • Four class action lawsuits were filed against Bank One Corp., Xerox Corporation, Tyco International Ltd., and Campbell Soup Company.
  • The lawsuits allege that the companies and their officers engaged in securities fraud, including inflating financial results, overstating revenue and income, and concealing declining demand for products.
  • Investors who purchased or acquired stock of the companies between specific dates in the late 1990s may be entitled to participate in the class action lawsuits.
  • The cases against Bank One Corp., Xerox Corporation, and Tyco International Ltd. allege that the companies engaged in deceptive practices to conceal declining demand for their products and artificially inflate the price of their stock.
  • The case against Campbell Soup Company alleges that the company improperly recorded revenue from its sale of condensed soup.
  • Certain officers of the companies sold hundreds of thousands of shares of their own stock at allegedly artificially inflated prices, realizing over $270 million in proceeds.
  • The law firm Schatz & Nobel, P.C. focuses its practice on securities fraud class action litigation and has served as lead counsel in cases throughout the country.

Statistics:

  • 2.7 million shares of Tyco stock were sold by officers at allegedly artificially inflated prices, generating proceeds of at least $270 million.
  • The stock price of Bank One plummeted from its Class Period high of $63.563 per share to close at $34.625 per share on November 10, 1999.
  • Certain insiders sold over $51.77 million in proceeds from insider trading activities involving Xerox common stock.
  • The Securities and Exchange Commission conducted an informal inquiry relating to charges and reserves taken in connection with Tyco International's acquisition.

Sources:

  • (Source: Business Wire, January 14, 2000)
  • Bank One Corp., Xerox Corporation, Tyco International Ltd., and Campbell Soup Company financial statements and regulatory filings cited in the lawsuits
  • Schatz & Nobel, P.C. website and contact information