Short Take: Compaq faces class-action suit

A class-action lawsuit was filed against Compaq on behalf of those who purchased stock between July 10, 1997 and March 6, 1998. The suit claims that Compaq and certain officers and directors in the company issued false and misleading financial information. The suit said the false information inflated the stock price and defendants took advantage of the inflated stock and sold nearly 2.5 million shares for proceeds of more than $120 million.

April 22, 1998 10:15 a.m. PT

A class-action lawsuit was filed against on behalf of those who purchased stock between July 10, 1997 and March 6, 1998. The suit claims that Compaq and certain officers and directors in the company issued false and misleading financial information. The suit said the false information inflated the stock price and defendants took advantage of the inflated stock and sold nearly 2.5 million shares for proceeds of more than $120 million.