BigClassActions.com

Choicepoint Inc. NYSE: CPS



Company: ChoicePoint, Inc.
Ticker Symbol: NYSE: CPS
Class Period: November 24, 2003 to March 3, 2005
Date Filed: Mar-11-05
Lead Plaintiff Deadline: May-03-05
Court: Northern District, GA
Allegations:
A securities fraud class action complaint in the United States District Court for the Northern District of Georgia against ChoicePoint, Inc. ("ChoicePoint" or the "Company"), Derek Smith, Doug Curling, and Darryl Lemecha on behalf of purchasers of ChoicePoint common stock (NYSE: CPS) between November 24, 2003 through March 3, 2005, inclusive (the "Class Period").

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Unbeknownst to the market until February 15, 2005, from approximately October 2003 through October 2004 criminals using "low-tech" methods had been able to access thousands of records containing personal information maintained by ChoicePoint. Throughout the Class Period, the Defendants made material misrepresentations and/or omitted to make material disclosures by falsely claiming that ChoicePoint had unique capabilities and systems in place to enable the responsible use of information while ensuring the protection of personal privacy. Defendants also falsely claimed during the Class Period that the theft of consumer data they recently announced was unprecedented and that the Company welcomes national discussion on how to ensure that information is used responsibly.

As the market learned in February, 2005, ChoicePoint did not have adequate controls in place to protect the privacy of the information it compiled and sold. Defendants became aware of the criminals' access of the Company's records in October of 2004. Despite knowing of this serious threat to consumer privacy and despite knowing that their representations about the security of ChoicePoint's data were inaccurate, Defendants waited until February 15 of this year to disclose any information about the breach in Company security. As the market learned on March 2, 2005, a similar incident occurred five years ago resulting in the disclosure of 7,000 records. Notwithstanding their nondisclosure and misstatements, Defendants Smith and Curling sold over eighteen million dollars of stock between the time they discovered the criminals' access and their initial disclosure of the breach of their system in February.

When Defendants belatedly acknowledged that the security of ChoicePoint's database had been breached and when the truth about Defendants' prior conduct and misrepresentations began to emerge, the market's reaction to the disclosures was swift and severe. Following these disclosures, the market price of ChoicePoint's common stock dropped from a high of $47.95 per share during the Class Period to as low as $37.65 per share on March 4, 2005.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.


If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.

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