Big Bull, hello
The first in what I suspect will be a series of lawsuits as the buzzards begin to circle:
biz.yahoo.com
SOURCE: Barrack, Rodos & Bacine
Barrack Rodos Files Suit Against Plains All American Pipeline LP, and Certain Of Its Officers Alleging Misrepresentations
PHILADELPHIA, Dec. 1 /PRNewswire/ -- Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following:
A class action has been commenced in the United States District Court for the Southern District of Texas on behalf of all persons who purchased common Units of Plains All American Pipeline LP (NYSE: PAA - news; ''Plains'' or the ''Company''), between November 17, 1998 and November 29, 1999, inclusive (the ''Class Period'').
The complaint charges Plains and certain of its officers with violations of federal securities laws by making misrepresentations about the Company's business, earnings growth, and financial statements, as well as its ability to continue to achieve profitable growth. During the Class Period, Plains consistently reported profitable results claiming that it was successfully executing its plan to expand its crude oil sales business. While defendants were publicly reporting profits of more than $35 million for the first, second, and third quarters of 1999, Plains sold over $300 million of Plains Units in two consecutive public offerings, including, most recently, a Public Offering on September 30, 1999. As Plains continued to report profits from operations, the price of Plains Units reacted, rising to a Class Period high of $20-3/16 on November 9, 1999. Then, on November 29, 1999, Plains revealed that it had incurred a loss of over $160 million -- a loss that the complaint alleges had been concealed since at least the spring of 1999 -- as the result of speculative commodity trading. The complaint further alleges that, contrary to the Company's representations in the Initial Public Offering Prospectus and the Secondary Offering Prospectus, Plains did not have the ability to and was not monitoring its hedging activities. In fact, Plains revealed that it would likely be restating its previously reported financial results for each of the prior three quarters of fiscal 1999. This revelation caused Plains Units to fall as low as $9-5/8 per Unit, a decline of 55% from their Class Period High.
The plaintiff seeks to recover damages on behalf of all purchasers of Plains Units during the Class Period, including those who purchased their Units in the Company's Secondary Offering on or about September 30, 1999. Plaintiff is represented by the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions involving financial fraud. Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years. The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey, and has been designated lead counsel by federal and state courts across the country in large, complex cases. For more information about Barrack, Rodos & Bacine, please visit their website at www.barrack.com.
If you are a member of the Class described above, you may, no later than January 28, 2000, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this case or your rights or interests, please contact: Maxine S. Goldman, Shareholder Relations Manager, at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, at 800-417-7305 or 215-963-0600, fax number 888-417-7306 or 215-963-0838, or by e-mail at msgoldman@barrack.com.
SOURCE: Barrack, Rodos & Bacine
Curiously reminiscent of Nick Leeson's debacle, although the stakes aren't quite as high. Those Singaporean jails are a tougher gig than Oklahoma or Texas. I wonder when the news services will identify the trader and put him in center stage.
For now though, the first school of bottom feeders has emerged from the slime and discovered their legs. Class Action? Jesus.
Regards to all.
Aggie |
