First, let me say that I am no fan of Cityscape management !
However, I firmly believe that the suits themselves have been responsible for a larger percentage of the price drop.
Below are all worthy news items taken from Reuters. I have listed the price on the market day before the news and the price on the market day after the news. Please feel free to make your own decision as to the real cause of the shareholders price demise in CTYS.What really gets me is the fact that the latest suits are blaming the UK incident for the price changes below when it seems almost certain that the suits themselves have done most of the recent price damage.
Day Before $ 10.437
9/22/97 - S&P: IS EXCESS SERVICING EXCESSIVE?
Day After: $ 10.625
Day Before: $ 9.50
9/29/97 - Cityscape Financial Corp. Files Resale Registration Statement --Convertible Preferred Stock
Day After: $ 9.812
Day Before: $ 10.125
10/06/97 - Notice of Pendency of Class Action Filed Against Cityscape Financial Corporation
Day After: $ 9.937
Day Before: $ 9.00
10/14/97 - Class Action Lawsuit Filed on Cityscape Financial Corp.
Day After: $ 7.937
Day Before: $ 7.937
10/16/97 - Securities Action Seeking Class Action Certification Filed
Day After: $ 6.00
Day Before: $ 3.468
10/22/97 - Cityscape Retains Financial Advisor
10/22/97 - S&P LOWERS CITYSCAPE FINANCIAL RATINGS TO 'B-'; WATCH
10/22/97 - S&P Lowers Cityscape Financial Rtgs to 'B-';Watch, Dev
10/22/97 - Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Files Class Action Suit Against Cityscape Financial
Day After: $ 2.500
Day Before: $ 2.50
10/28/97 - Notice of Amended Complaint for the Class Action Filed Against Cityscape Financial Corporation
Day After: $ 1.812
Day Before: $ 1.593
10/31/97 - S&P LOWERS CITYSCAPE FINANCIAL SENIOR DEBT & CREDIT RATINGS
10/31/97 - S&P Lowers Cityscape Fin Sr Debt & Cntrprty Cred Rtgs
Day After: $ 1.562
Day Before: $ 1.562
11/04/97 - Notice of Pendency of Class Action against Cityscape Financial CorpDay
After: $ 1.718
Day Before: $ 1.531
11/07/97 - S&P PLACES CITYSCAPE HOME TRUSTS RATINGS ON WATCH, NEGATIVE --
Day After: $ 1.562
Day Before: $ 1.437
11/13/97 - Class Action Complaint Filed Entitled Mojgan Khaghan. et ano. v. Cityscape Financial Corp
11/14/97 - Cityscape Reports Third Quarter Results --
Day After: $ 1.906
Day Before: $ 1.905
11/18/97 - Cityscape Financial Corp. Sued in Investor Class Action
Day After: $ 1.812
Day Before: $ 1.625
11/25/97 - CLASS ACTION COMMENCED BY KAUFMAN MALCHMAN KIRBY & SQUIRE, LLP
11/26/97 - ABBEY, GARDY & SQUITIERI, LLP ANNOUNCES SECURITIES FRAUD SUIT
11/26/97 - Cityscape Announces Change to Board of Directors
Final Close 11/27/95 $ 1.812
ÿFor those of you contending that the attorneys are simply out to protect the investors from this unscrupulous company, submitted below are the suits pending against Cityscape. Note that these all claim the UK incident is responsible for everything ...
ÿ
1. Date Suit Released: Nov. 24 /PRNewswire
Class Period: November 4, 1996 through October 22, 1997
Firm: Abbey, Gardy & Squitieri, LLP and Law Offices of Bernard M. Gross, P.C
ÿ
The Complaint charges Cityscape and certain of its officers with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiff alleges that during the Class Period defendants made a series of materially false and misleading public statements concerning the Company"s loan and accounting policies. In particular, the Complaint alleges, that Cityscape misrepresented and failed to disclose, among other things, that a substantial portion of the Company"s income was derived by engaging in inappropriate loan and accounting practices in its United Kingdom subsidiary.
ÿ
The Complaint alleges that the defendants" false statements artificially inflated the price of Cityscape stock.
ÿ
Plaintiff seeks to recover damages on behalf of himself and all purchasers of Cityscape common stock during the Class Period. Excluded from the Class are the defendants and members of their immediate families, any entity in which a defendant has a controlling interest and the heirs of any such excluded party.
ÿ
ÿ
2. Date Suit Released: NEW YORK, Nov. 25 /PRNewswire
Class Period: November 4, 1996 - August 12, 1997
Firm: Kaufman Malchman Kirby & Squire
ÿ
The complaint charges Cityscape and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. Sec. 78(b), and 78t(a) and Rule 10b-5 thereunder. Among other things, plaintiffs claim that defendant Cityscape through its wholly owned subsidiaries Cityscape Corp. and Cityscape Mortgage Corp. Ltd. ("CAC") was reporting significant growth in its United Kingdom (U.K.) operation and growing capabilities for the future, Cityscape recklessly disregarded that its loan practices were under attack in the U.K. and that it would need substantial reserves to account for any limitations resulting thereupon. Cityscape"s net earnings for the first quarter were materially overstated because it failed to record substantial reserves after being put on notice by a March 1997 letter from the U.K."s Office of Fair Trading which questioned CAC standard concessionary rate structure. Cityscape"s common stock during the Class Period traded as high as $31.50 per share. Its Class Period stock prices were artificially inflated as a result of the defendants" misrepresentations and/or failure to disclose the true adverse facts about the Cityscape lending practices. On August 13, 1997, Cityscape common stock plunged over 11% per share after disclosures that Cityscape was reviewing all its outstanding U.K. loans for the possibility of lending malpractice. During the Class Period Cityscape insiders sold thousands of shares of their own personal holdings in Cityscape at prices that were artificially inflated.
ÿ
ÿ
ÿ
3. Date Suit Released: BUSINESS WIRE -Nov. 18, 1997
Class Period: November 4, 1996 through October 22, 1997
Firm: Wolf Popper LLP
ÿ
ÿ
The Complaint in the action charges Cityscape and Robert Grosser with violations of the federal securities laws (Sections 10(b) and 20 of the Securities Exchange Act of 1934). The Complaint alleges that Cityscape misrepresented and failed to disclose, among other things, that a substantial portion of its income was derived by engaging in inappropriate loan and accounting policies with respect to its United Kingdom subsidiary. Cityscape"s stock, on October 22, 1997, plunged to $2.75 per share, a dramatic decline of approximately 91 percent from its high during the Class Period, after it disclosed that its financial results would be adversely impacted by, among other things, certain initiatives adopted by United Kingdom regulatory officials.
ÿ
ÿ
ÿ
4. Date Suit Released: BUSINESS WIRE -Nov. 13, 1997
Class Period: March 31, 1997 through Oct. 22, 1997
Firm: Lowey Dannenberg Bemporad & Selinger, P.C. of White Plains, N.Y
ÿ
The Complaint alleges that, during the Class Period, Cityscape, Robert Grosser, who serves as the Company"s Chairman, Chief Executive Officer and President and Robert C. Patent, Cityscape"s Vice-Chairman, Executive Vice President and Treasurer, violated the federal securities laws, including Section 10(b) of the Securities Exchange Act of 1934, by misrepresenting and/or omitting material information concerning Cityscape"s financial condition and prospects resulting from inappropriate loan origination and prepayment policies with respect to the loan activities of Cityscape"s United Kingdom subsidiary.
ÿ
On Oct. 22, 1997, Cityscape announced that its financial results would be adversely impacted by, inter alia, certain initiatives adopted by United Kingdom regulatory officials.
ÿ
ÿ
5. Date Suit Released: BUSINESS WIRE -Nov. 4, 1997
Class Period: April 1, 1997 and August 15, 1997
Firm: Milberg Weiss Bershad Hynes & Lerach LLP
ÿ
In particular, the complaint alleges that the Company failed to disclose that a substantial portion of the Company"s income was derived by engaging in inappropriate loan and accounting policies in the United Kingdom. When the truth about the extent and nature of the Company"s loan activities and regulatory problems in the United Kingdom became known to the public, the price of Cityscape stock plummeted. Because of the issuance of a series of false and misleading statements concerning Cityscape"s business and defendants" concealment of matters regarding the deteriorating business of the Company, the price of Cityscape common stock was artificially inflated during the Class Period.
ÿ
ÿ
6. Date Suit Released: BUSINESS WIRE -Oct. 22, 1997
Class Period: Nov. 4, 1996, through Aug. 13, 1997
Firm: Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
ÿ
ÿ
The complaint charges that Cityscape and certain officers and directors of the company during the relevant time period violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by, among other things, misrepresenting the fact that the company was engaging in improper loan and accounting practices. The complaint alleges that throughout the Class Period, the defendants misled investors with regard to Cityscape"s loan practices in the United Kingdom and the negative effect such practices would ultimately have on the company"s revenues and profits. When the company revealed the changes it would have to make in its loan practices due to regulatory initiatives in the United Kingdom, and the resulting impact this would have on profitability, the stock dropped precipitously.
ÿ
ÿ
7. Date Suit Released: BUSINESS WIRE -Oct. 14, 1997
Class Period: April 1, 1997 and Aug. 15, 1997
Firm: Wolf Haldenstein Adler Freeman & Herz LL
ÿ
ÿ
The complaint charges Cityscape and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 by, among other things, failing to disclose to the investing public, including plaintiff and other members of the Class, the fact that material and significant portions of the company"s income were derived by engaging in inappropriate loan and accounting practices that were under examination by British authorities.
ÿ
The complaint alleges that defendants mislead plaintiff and the Class by reporting that certain regulatory initiatives in the United Kingdom regarding certain lending practices would not have a material effect on the Company"s operations, revenues and profits.
ÿ
The complaint alleges that when the truth regarding the impact on the Company of the changes in United Kingdom loan policies was revealed at the end of the Class Period the price of the Company"s stock fell precipitously as a result of these revelations.
ÿ
ÿ
8. Date Suit Released: BUSINESS WIRE -Oct. 6, 1997
Class Period: April 1, 1997 through August 15, 1997
Firm: Stull, Stull & Brody
ÿ
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of
Named as defendants are Cityscape and certain of its officers and directors. The complaint alleges that defendants violated the federal securities laws (Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5) by, among other things, misrepresenting and/or omitting material information concerning Cityscape"s loan and accounting policies. The complaint alleges that by the end of the Class Period, the price of Cityscape common stock had plummeted as a result of adverse information revealed. |
