updated 02:45 pm EST, Wed October 31, 2001
After several informal statements and notices, the law firm of Cauley Geller Bowman and Coates, LLP has formally brought a class action law suit against Apple Computer Inc on behalf of investors in publicly traded securities during the period between July 19, 2000-September 28, 2000. The complaint charges Apple with " issuing false and misleading statements concerning its business and financial condition."
The firm's claims are as follows:
"Specifically, the complaint alleges that on 7/18- 19/00, Apple introduced its new Power Mac G4 Dual Processor, G4 Cube and iMac personal computers, representing that they were exceptionally powerful, fast and attractive, coming with exceptionally attractive designs and containing new and revolutionary features. At this time, Apple represented that the development of these new products was completed, they were ready for mass production and would be available in quantity very shortly. Apple claimed this would result in Apple achieving strong revenue and earnings per share (``EPS'') growth in its 4thQ F00 (to end 9/30/00) and F01. As a result, Apple's stock climbed to a Class Period high of $64-1/8 in early 9/00, when four top Apple officers sold 370,000 shares of their Apple stock for $22 million.
"Suddenly, just 20-25 trading days later, on 9/28/00, Apple shocked investors by revealing a huge 4thQ F00 revenue and EPS shortfall due to very poor sales to its education (K-12) market and poor consumer acceptance of its new personal computer products (some of which had been late to market, had defects and lacked features which were essential for market success), resulting in the accumulation of excessive inventories of finished goods in Apple's distribution channel and Apple having to cancel component part orders and, thereby, incur financial penalties. As rumors of Apple's troubles circulated prior to and then following Apple's shocking disclosure, Apple's stock collapsed from $61-3/64 on 9/20/00 to $25-3/8 on 9/29/00, continuing to fall to as low as $17 and then to $13-5/8, as investors absorbed the full impact of these shocking revelations. The stock decline wiped out over $10 billion of
Apple's market capitalization in just a few days.
Cauley Geller Bowman and Coates are offering a sign up page for investors who feel they were affected by this claim.