Milberg Weiss Announces Class Action Suit Against Steven Madden, Ltd. NEW YORK--(BUSINESS WIRE)--June 21, 2000--The law firm of Milberg Weiss Bershad Hynes & Lerach
LLP announces that a class action lawsuit was filed today on behalf of purchasers of the securities of Steven Madden
Ltd. ("Steven Madden" or the "Company") (NASDAQ: SHOO), between November 3, 1999 and June 20, 2000,
inclusive.
A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website
at: milberg.com
The action, numbered CV 00 3676, is pending in the United States District Court for the Eastern District of New
York, located at 225 Cadman Plaza East, Brooklyn, New York 11201, against defendants Steven Madden, Steven
Madden ("Madden") (Chairman and Chief Executive Officer), Rhonda J. Brown (President, as of February 29,
2000, and Chief Operating Officer) and Arvind Dharia (Chief Financial Officer and Secretary). The Honorable
Raymond J. Dearie is the Judge presiding over the case.
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934,
and Rule 10b-5 promulgated thereunder, by failing to disclose material adverse facts about the Company and
defendant Madden. Specifically, defendants failed to disclose, among other things, that (a) defendant Madden had
participated in a scheme to manipulate the market for various initial public offerings of common stock of certain
companies and that he had done so in conjunction with Stratton Oakmont - a securities brokerage that was censured
and fined by the NASD and SEC for securities fraud and is now defunct; (b) that the Company's projections of future
success were lacking in a reasonable basis at all times because defendant Madden's ability to continue in his roles at
the Company were subject to increased risk and uncertainty given his involvement in the aforementioned scheme; and
(c) that, given defendant Madden's involvement in the aforementioned scheme, his ability to continue to operate and
direct the operations of the Company were subject to increased and heightened risk in that he would be unable to
continue in his roles at the Company and, accordingly, the Company's operations would be adversely affected. On
June 20, 2000, when news of defendant Madden's arrest for his alleged involvement with a massive securities fraud
was communicated to the securities markets, the price of Steven Madden common stock fell from 13 1/8 to 11 3/16
before trading was halted on the NASDAQ.
If you bought the securities of Steven Madden between November 3, 1999 and June 20, 2000, you may, no later
than August 21, 2000, request that the Court appoint you as lead plaintiff. 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 the class member's claim is typical of the claims of other class members, and that the class
member 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, however, affected by the decision whether or not
to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach, LLP, or other counsel of your
choice, to serve as your counsel in this action.
Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 145-lawyer firm with offices in New
York City, San Diego, San Francisco, Los Angeles, Boca Raton, and Seattle, and is active in major litigations
pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many
important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than
$20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If
you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with
regard to the case, please contact the following attorneys:
Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th Floor, New York, NY, 10119-0165
Phone Number: (800) 320-5081 Website: milberg.com Email: StevenMaddencase@milbergNY.com
CONTACT:
Milberg Weiss Bershad Hynes & Lerach LLP
Steven G. Schulman or Samuel H. Rudman, 800/320-5081
Website: milberg.com
Email: StevenMaddencase@milbergNY.com
TICKERS: NASDAQ:SHOO
KEYWORD: NEW YORK
BW2694 JUN 21,2000
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