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.