Securities Fraud Class Actions Filed Against Bank One Corp., Campbell Soup Company, and Others

Strategic Insights -

Securities fraud class actions have been filed against several major corporations, including Bank One Corp., Campbell Soup Company, Legato Systems, Inc., Lucent Technologies, Inc., and Sunterra Corporation. The cases allege that the companies artificially inflated their stock prices through improper accounting practices, false revenue reporting, and other means. Investors who purchased or acquired stock in these companies during the specified class periods may be eligible to participate in the lawsuits and seek compensation.

Key Takeaways:

  • Bank One Corp. allegedly inflated financial results and stock prices by improperly overstating revenue and income from late fees, penalties, and interest in its credit card subsidiary.
  • Campbell Soup Company allegedly improperly recorded revenue from "sales" when the products were not shipped to customers, in order to meet Wall Street's earnings estimates.
  • Legato Systems, Inc. allegedly improperly recorded revenue on three contracts during the third and fourth quarters of 1999, causing the price of its common stock to be artificially inflated.
  • Lucent Technologies, Inc. allegedly made material misrepresentations concerning its plan to restructure operations, profit levels, and demand for its products, which artificially inflated the price of its stock.
  • Sunterra Corporation allegedly materialy overstated its accounts receivable, revenues, and earnings throughout the class period.
  • Schatz & Nobel, P.C. has filed securities fraud class action lawsuits against these companies and is seeking to recover compensation for investors.
  • Investors who purchased or acquired stock in these companies during the specified class periods may be eligible to participate in the lawsuits and seek compensation.

Statistics:

  • Bank One Corp. stock price plunged from $63.563 per share to $34.625 per share on November 10, 1999, after partial disclosures of the company's improper accounting practices.
  • Campbell Soup Company allegedly recorded phantom "sales" worth an undisclosed sum.
  • Legato Systems, Inc. officers sold their stock at artificially inflated prices for proceeds of over $14 million.
  • Lucent Technologies, Inc. stock price dropped approximately $20.00 per share after the company announced that its financial results would fall materially short of analysts' expectations.
  • Sunterra Corporation stock price plunged 35% to an all-time low after the company revealed that its fourth quarter results would be significantly lower than the prior year.

Sources:

  • "PRNewswire" (text from original release)
  • Schatz & Nobel, P.C. (law firm details)
  • Andrew M. Schatz and Jeffrey S. Nobel (lawyers at Schatz & Nobel, P.C.)