Company Press Release
January 31, 2000
HARTFORD, Conn -- If you purchased or otherwise acquired stock of Baker Hughes, Inc. (NYSE: BHI), Bank One Corp.
(NYSE: ONE), Campbell Soup Company (NYSE: CPB), Legato Systems, Inc. (Nasdaq: LGTO), Lucent Technologies, Inc.
(NYSE: LU), Sunterra Corporation (NYSE: OWN), TYCO International Ltd. (NYSE: TYC), or Xerox Corporation (NYSE:
XRX) between the dates identified below (regardless of whether or not you still own the stock), you should be aware
that the law firm of Schatz & Nobel, P.C. has filed securities fraud cases which seek to recover money on your
behalf. These cases have been filed as class actions, and you are entitled to participate as a lead plaintiff if
you wish. Please contact attorneys at Schatz & Nobel, P.C. as provided at the end of this release for more
information. A summary of the cases follows:
Baker Hughes, Inc. (NYSE: BHI): Class Period: (05/03/99 - 12/08/99): The lawsuit alleges that Baker Hughes issued
false financial statements as a direct result of the Company's improper accounting activities at its INTEQ drilling
unit, causing Baker Hughes to report false financial information for the first, second and third fiscal quarters
of 1999. The amount of the accounting irregularities is expected to be approximately $40 to $50 million. Baker
Hughes' common stock price was artificially inflated as a result of this conduct and plummeted approximately 33%
in reaction to the disclosures.
Bank One Corp. (NYSE: ONE): Class Period: (10/22/98 - 11/10/99): The lawsuit alleges that Bank One and its officers
inflated financial results and stock prices by improperly overstating revenue and income from late fees, penalties
and interest in Bank One's credit card subsidiary, as a result of the intentional failure to post credit card payments
on time. After a series of partial disclosures beginning on August 24, 1999, and ending on November 10, 1999, the
facts concerning defendants' conduct became widely known, including in a report that First USA was the target of
an investigation by the Office of the Comptroller of the Currency. Following the disclosures, 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.
Campbell Soup Company (NYSE: CPB): Class Period: (11/18/97 - 01/08/99): The lawsuit alleges that Campbell Soup
and its officers sought to inflate the price of Campbell Soup stock by improperly recording revenue from ``sales''
when, in actuality, Campbell Soup never shipped the product to its customers. The lawsuit alleges that Campbell
Soup claimed these phantom ``sales'' in order to meet Wall Street's estimates for earnings for Campbell Soup.
Legato Systems, Inc. (Nasdaq: LGTO): Class Period: (10/20/99 - 01/19/00): The Complaint alleges that Legato Systems
improperly recorded revenue on three contracts during the third and fourth quarters of 1999, thereby overstating
revenues and earnings and causing the price of Legato Systems common stock to be artificially inflated. Moreover,
various officers and directors sold their stock at artificially inflated prices during the Class Period for proceeds
of over $14 million.
Lucent Technologies, Inc. (NYSE: LU): Class Period (10/27/99 - 01/06/00): The Complaint alleges that Lucent and
certain of its officers made material misrepresentations concerning, among other things, Lucent's plan to restructure
its operations, its profit levels, and the demand for the Company's products, which artificially inflated the price
of Lucent stock. On January 6, 2000, the Defendants announced that Lucent's financial results would fall materially
short of analysts' expectations, and the price of Lucent stock dropped approximately $20.00 per share.
Sunterra Corporation (NYSE: OWN): Class Period: (10/04/98 - 01/19/00): The Complaint alleges that Sunterra and
certain of its officers materially overstated Sunterra's accounts receivable, revenues, and earnings throughout
the Class Period. On January 20, 2000, defendants revealed that Sunterra's fourth quarter results would be significantly
lower than the prior year and that Sunterra would be taking a massive charge of $38 - $45 million to write off
delinquent accounts receivable improperly left on the Company's books. When the truth was disclosed, Sunterra's
stock price plunged 35% to an all-time low.
TYCO International Ltd. (NYSE: TYC): Class Period: (10/01/98 - 12/08/99): The lawsuit alleges that TYCO and its
officers misled investors by using accounting methods which made it appear that companies TYCO acquired were experiencing
healthier growth than they actually were. During the Class Period, certain TYCO officers sold more than 2.7 million
shares of TYCO stock, at allegedly artificially inflated prices, for proceeds of at least $270 million. On December
9, 1999, TYCO announced that the Securities and Exchange Commission was conducting an informal inquiry relating
to charges and reserves taken in connection with TYCO's acquisitions.
Xerox Corporation (NYSE: XRX): Class Period: (01/25/99 - 12/10/99): The lawsuit alleges that Xerox and its officers
inflated its stock price by engaging in deceptive practices to conceal declining demand for Xerox products and
a failed restructuring of Xerox operations. Prior to the disclosure of the adverse facts, certain corporate officers
sold hundreds of thousands of shares of Xerox common stock to the investing public at artificially inflated prices.
These sellers realized over $51.77 million in proceeds from these insider trading activities.
Schatz & Nobel, P.C. focuses its practice on securities fraud class action litigation and has served as lead
counsel in cases throughout the country. If you wish to discuss these actions, obtain a copy of any of the complaints
in these actions, or ask any questions concerning this notice or your rights or interests with respect to these
matters, please contact Andrew M. Schatz or Jeffrey S. Nobel toll-free at (800) 797-5499, or by e-mail at SN06106@aol.com.
For more information about Schatz & Nobel, P.C. or the class action process, please visit our website at www.snlaw.net.
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Contact:
Schatz & Nobel, P.C.
Andrew M. Schatz
Jeffrey S. Nobel
800/797-5499
sn06106@aol.com