Please file
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION &!$jj%%~ FlLrn
MARK BERGER, on behalf of
himself and all others similarly situated,
Plaintiff,
V.
COMPAQ COMPUTER CORP. ;
ECKHARD PFEIFFER; EARL L.
MASON; JOHN T. ROSE; JOHN W.
WHITE; ROBERT W. STEARNS;
MXHAEL WTNKLER; THOMAS J.
PERKINS- J. DAVID CABELLO;
MICHAEL HEL; GREGORY E.
PETSCH; KENNETH L. LAY;
ANDREAS BARTH; BENJAMIN
ROSEN; RODNEY SCHROCK; and
ROEL PIEPER,
Defendants.
CLASS ACTION COMPLAINT FOR
VIOLATIO~ERAL SECU-S LAWS
Plaintiff, as and for his class action complaint, alleges the following upon
knowledge as to himself and his own acts. All other allegations are based upon the investigation
conducted by his attorneys, including a review of public filings of defendant Compaq Computer
Corp. ("Compaq" or the "Company"), and reports, press releases and articles pertaining to
Compaq.
ICTION AND VI?=
1. This Court has jurisdiction of this litigation under Section 27 of the
Securities Exchange Act of 1.934 (the "Exchange Ad'), 15 U.S.C. Section 78aa.
2. The claims herein arise under Sections 10(b) and 20(a) of the Exchange
Act, 15 U.S.C. Sections 78j@) and 78(t)(a) and Rule lob-5, promulgated thereunder by the
Securities and Exchange Commission ("SEC") (17 C.F.R. Section 240.1 Ob-5).
115390
3. Venue is proper in this district pursuant to Section 27 of the
because defendant Compaq has its principal place of business in this district and transacts
substantial business in this district, and many of the alleged acts, transactions and conduct
SNIPPETS:
Plaintiff, as and for his class action complaint, alleges the following upon personal
All other allegations are based upon the investigation conducted by his attorneys, including
This Court has jurisdiction of this litigation under Section 27 of the Securities Exchange
In connection with the conduct complained of herein, defendants, directly or indirectly, used
This action is brought as a class action to remedy violations of the Exchange Act on behalf
During the Class Period, defendants engaged in a course of conduct that was designed to, and
plaintiff and each member of the Class purchased shares of Compaq commqn stock in the open
Plaintiff and each member of the Class directly or indirectly relied upon the individual
Plaintiff Mark Berger purchased 100 shares of Compaq common stock on October 30, 1997, at
Defendant E&hard Pfeiffer -- President, Chief Executive Officer and a Director of Compaq
Defendant Pfeiffer issued many of the within detailed false and misleading statements during
Defendant Earl L. Mason -- Senior Vice President of Finance and Chief Financial Of&r of
Defendant Rosen sold significant amounts of his own Compaq shareholdings at artificially
defendants' fraudulent scheme, and did so while in possession of material non public
Defendant Rose sold significant amounts of his own Compaq shareholdings at artificially
Worldwide Sales, Marketing Services and Support for Compaq.
Dell, unhke Compaq, builds each PC to order and keeps virtually no inventory of finished PC's
Compaq, by contrast, has historically maintained large inventories of both components and
As is detailed below, Compaq's efforts during the Class Period to achieve increased,
Compaq's slippage in the marketplace through the utilization of unsustainable practices such
Although these undisclosed practices allowed the Company to report high sales and
However, the Company was able to mask its "channel stuffing" by factoring out its bloated
|
