Short Take: Class-action suit against CompuServe

A class-action lawsuit was filed against in a U.S. District Court in Ohio. The suit claims that CompuServe, its officers and directors, its parent businesses, and underwriters of its IPO failed to advise stock purchasers during the offering that the company was experiencing trends that affected subscriber growth rates and jeopardized profitability. The suit seeks damages on behalf of persons who purchased CompuServe stock during the IPO in April 1996.