Berman DeValerio & Pease Announces Class Action Lawsuit Against Xerox Corporation

Business Wire, Feb 21, 2001

Business Editors & Legal Writers

HARTFORD, Conn.--(BUSINESS WIRE)--Feb. 21, 2001

Berman DeValerio & Pease Announces Shareholder Class Action Against

Xerox Corporation

Xerox Corporation (NYSE: XRX) is accused of defrauding investors in a pending class action, the law firm of Berman DeValerio & Pease LLP announced today.

The class action was filed February 15 in the United States District Court for the District of Connecticut. The complaint seeks damages for violations of federal securities laws on behalf of all investors who bought Xerox stock between February 15, 1998 and February 6, 2001 (the "Class Period").

Berman DeValerio & Pease has represented defrauded investors in class actions for nearly two decades. To review the complaint and learn more about becoming a lead plaintiff, visit our Website at http://www.bermanesq.com.

The complaint says that Xerox and several of its top officers reported false financial results during the class period, failing to adhere to the standard accounting practices the company claimed to follow. Among other things, Xerox is charged with:

-- Improperly recognizing revenues from its leasing operations by booking up front those lease payments attributable to future supplies and services.

-- Boosting short-term results by overstating the value of future payments from leases originated in developing countries.

-- Failing to write off mounting bad debts and improperly classifying transactions in its Mexico operations, which resulted in $119 million in charges in the second and third quarters of fiscal 2000.

Xerox issued a statement about the "irregularities" in Mexico on June 16, 2000, falsely portraying them as an aberration perpetrated by rogue executives. But on February 6, 2001, a Wall Street Journal article reported allegations of accounting fraud that went far beyond Mexico. Meanwhile, Xerox shares fell from as high as $124 a share during the Class Period to just $4.43 a share, resulting in hundreds of millions of dollars in losses to Class members. The company's accounting practices are now the subject of a Securities and Exchange Commission (SEC) investigation.

If you purchased Xerox common stock during the period February 15, 1998 through and including February 6, 2001, you may wish to contact the following attorneys at Berman DeValerio & Pease to discuss your rights and interests:

Sara Davis, Esq.

Michael Lange, Esq.

Berman DeValerio & Pease

One Liberty Square,

Boston, MA 02109

bdplaw@bermanesq.com (800) 516-9926

You may also visit us at our website at www.bermanesq.com, where a copy of the complaint is available.

If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than April 16, 2001. You may contact the attorneys at Berman DeValerio & Pease to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. To be a member of the class, however, you need not take any action at this time and you may retain counsel of your own choice.

With offices in Boston and San Francisco, Berman DeValerio & Pease LLP has prosecuted shareholder class actions since 1982, recovering more than $1 billion for investors. The firm has acted as lead counsel in numerous lawsuits involving violations of federal securities laws. It has successfully litigated these actions, and has been singled out for its excellence by many courts. The firm prides itself on its responsiveness to shareholders and their needs in each case.