Several class actions have been filed against industrial services provider SPX Corporation (NYSE: SPW) and certain of its officers and directors by stockholders who purchased the company's common stock between July 20, 2003, and February 26, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

Throughout the applicable period, the defendants allegedly issued false and misleading projections of the company’s fiscal year 2003 earnings per share. The defendants emphasized increased free cash flow and earnings per share throughout the period. The defendants allegedly failed to disclose that these results were only made possible through a last minute one-time gain resulting from a legal settlement, and were not reflective of the deteriorating underlying business operations of SPX. Upon announcement of the problems, SPX stock plummeted 21%, on usually high trading volume of 16 million shares, from its February 26, 2004, close of $53.30 per share to a close of $42.00 on February 27, 2004.

Throughout the period, the defendants issued public statements assuring investors that SPX was on track to meet its earnings per share projections-- all the while, the defendants allegedly knew the company’s financial growth had materially declined. While the investing public was shielded from the truth of SPX's poor earnings prospects, in January and February 2004, CEO Blystone sold significant portions of his own SPX holdings, amounting to over $41 million in stock. On February 27, 2004, the defendants filed the company's 2003 Form 10-K with the SEC, revealing the true financial condition of SPX, and that SPX was only able to meet its EPS projections through inclusion of a one-time gain.

If you purchased the securities issued by SPX Corporation, you may request appointment by the court as a lead plaintiff if you do so by May 4, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member.