Wilensky v. Digital Equipment Corp.

MEMORANDUM

TAURO, Chief Judge.

On March 21, 1994, the Digital Equipment Corporation (“Digital”) began a public offering of 16 million shares of Series A, Eight and %% Cumulative Preferred Stock. This offering allowed Digital to raise $400 million of much-needed capital.

Three weeks later, Digital issued quarterly data that revealed huge losses. Digital’s stoek suffered considerably, and dozens of lawsuits followed. These were eventually consolidated into the three cases currently before this court: Shaw v. Digital, C.A. 94-10759-JLT (“Shaw’’); Wilensky v. Digital, C.A. 94-10752-JLT, (“Wilensky…