Wechsler Harwood Halebian & Feffer LLP Files Class Action Against Comdisco, Inc. (NYSE: CDO)

Wechsler Harwood Halebian & Feffer LLP filed a securities class action lawsuit (the "Complaint") in the United States District Court for the Northern District of Illinois on behalf of all investors who bought the common stock of Comdisco, Inc. (NYSE: CDO), ("Comdisco" or the "Company") in the period from January 25, 2000 to October 3, 2000, inclusive (the "Class Period").

The complaint charges that Comdisco, along with Nicholas K. Pontikes (Chief Executive Officer, President and Director of Comdisco) and John J. Vosicky (Chief Financial Officer, Executive Vice President and Director of Comdisco) (together, "Defendants") violated the Securities Exchange Act of 1934. Specifically, the Complaint alleges that during the Class Period, Defendants issued a series of material misrepresentations to the market in regard to Comdisco's operations and its Prism Communications Services Subsidiary. Defendants repeatedly issued positive statements with respect to Prism, Prism's ability to expand into new markets, and allegedly positive developments in Prism's then-current markets. However, Defendants did not disclose that Prism suffered from a multitude of negative factors, including, among other things, that local exchange carries were sluggish to provide Prism access to their networks, as well as the fact that Prism was experiencing fierce competition from entrenched telecommunications companies who were lowering prices in order to accumulate market share.

On October 3, 2000, Comdisco shocked the market when it announced that it would cease funding Prism and write down its Prism investment, which amounted to $350 million. In response to this announcement, Comdisco's stock price toppled 23% in one day, from $17.5625 per share to $13.37 per share. This was a 66% drop from the Class period high of $53 per share on March 9, 2000. Comdisco's debt ratings were also cut by three leading credit agencies. The Complaint alleges that prior to the disclosure of the true facts about Comdisco, Comdisco insiders, including defendant Vosicky, sold $10 million of their personally held Company stock. Defendants also launched an initial public offering for a tracking stock for another Comdisco business unit, and completed a $500 million 9.5% Senior Note offering on favorable terms.

Plaintiff seeks to recover damages on behalf of all investors who purchased Comdisco securities during the Class Period and who suffered damages as a result, and is represented by Wechsler Harwood Halebian & Feffer LLP, which has extensive experience representing investors in class actions. The reputation and expertise of the firm in investor and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex class action litigations. For more information about Wechsler Harwood Halebian & Feffer LLP, please visit the firm's website at http://www.whhf.com/.

If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than April 9, 2001, move the Court to serve as a lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff."

If you would like to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact the following:

  Wechsler Harwood Halebian & Feffer LLP
  488 Madison Avenue, New York, New York 10022
  Telephone: 877-935-7400 (toll free)

SOURCE: Wechsler Harwood Halebian & Feffer LLP

Contact: Wechsler Harwood Halebian & Feffer LLP, 877-935-7400

Website: http://www.whhf.com/