Wednesday August 18, 6:28 pm Eastern Time
Company Press Release
SOURCE: Law Offices of Steven E. Cauley, P.A.
Fraud Lawsuit Filed for Purchasers of Unistar Financial
Service Corp. Common Stock
DALLAS, Aug. 18 /PRNewswire/ -- The Law Offices of Steven E. Cauley announced today that a securities fraud lawsuit has been filed in the United States District Court for the Northern District of Texas on behalf of purchasers of Unistar Financial Service Corp. (Amex: UAI - news; ''Unistar'' or the ''Company'') common stock during the period between October 15, 1998 and July 20, 1999, inclusive (the ''Class Period''). The complaint charges Unistar and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
The complaint filed by Steven E. Cauley alleges that, throughout the Class Period, the price of Unistar's common stock was artificially inflated because:
1) the Company valued its Customer List well in excess of fair market value;
2) the Company amortized the customer list over an excessive period of time;
3)Unistar's website contained false statements regarding Unistar's 1999 revenues;
and 4) Unistar had failed to comply with various legal requirements of the Texas department of Insurance.
According to the lawsuit filed by Steven E. Cauley, when this information was disclosed to the securities markets, Unistar lost 55 percent of its value in two days -- then halted trading on July 20, 1999 -- and has not traded since. According to the lawsuit filed by Steven E. Cauley, prior to these revelations and the decline in the price of Unistar, Unistar and several of its officers issued, sold or otherwise disposed of over 16.2 million shares of Unistar at artificially inflated prices.
The Law Offices of Steven E. Cauley have substantial experience in prosecuting class action lawsuits on behalf of investors, and recently
obtained a $25 million settlement for certain purchasers of Medpartners securities. If you wish to serve as one of the lead plaintiffs in this lawsuit you must file a motion with the court within 60 days of August 18, 1999. If you have any questions regarding this lawsuit or how you may be able to recover for the losses you have incurred, please E-mail or call one of the attorneys listed below:
Steven E. Cauley
Scott E. Poynter
Gina M. Cothern
2200 N. Rodney Parham Road
Suite 218, Cypress Plaza
Little Rock, AR 72212
E-mail: CauleyPA@aol.com
1-888-551-9944 - toll free
SOURCE: Law Offices of Steven E. Cauley, P.A.
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