Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : MONEY GUILD INC.---OTC:(MYGD) MAJOR Diamond,Gold Discovery -- Ignore unavailable to you. Want to Upgrade?

To: MoneyMade who wrote (187)	11/1/1998 7:44:00 PM
From: Chuck Rubin	Respond to of 473

Okay, thanks MoneyMade. I will report back if I find out anything new. Chuckr

To: MoneyMade who wrote (187)	11/1/1998 9:20:00 PM
From: MoneyMade	Read Replies (1) \| Respond to of 473

Bad news for FP! Milberg Weiss Files Class Action Suit Against FirstPlus Financial Group Inc. and Its Officers and Directors Alleging Misrepresentations and False Financial Statements SAN DIEGO--(BUSINESS WIRE)--Oct. 30, 1998--Milberg Weiss today announced that a securities fraud class action has been commenced in the U.S. District Court for the Northern District of Texas on behalf of all persons who purchased or otherwise acquired the publicly traded securities of FirstPlus Financial Group Inc. (''FirstPlus'') (NYSE:FP - news) between Jan. 22, 1998 and Oct. 1, 1998 (the ''Class Period''). If you are a member of the Class described above, you may, no later than 60 days from today, 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 notice or your rights or interests, please contact plaintiffs' counsel, William Lerach, Alan Schulman or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@mwbhl.com. The complaint charges FirstPlus and certain of its officers and directors with violations of the Securities Exchange Act of 1934. FirstPlus is a consumer finance company which makes loans to homeowners based on the value of their homes. FirstPlus pioneered the use of high-loan-to-value (''HLTV'') loans, in which FirstPlus extends loans to customers in excess of the equity in their home. The complaint alleges that FirstPlus' claims of strong growth based upon its conservative accounting practices inflated the price of FirstPlus stock from its December 1997 low of $27 to a Class Period high of $54-7/8 on Apr. 14, 1998 and allowed defendant Daniel T. Phillips to obtain $50+ million from his 3.7 million FirstPlus shares during early 1998 by placing his FirstPlus shares into a family partnership and then obtaining margin loans collaterized solely by his FirstPlus shares. In this way, Phillips was able to obtain the benefits of selling his FirstPlus shares without alerting the investment community to his huge stock sales. The reinflation of FirstPlus shares was also instrumental to defendants' scheme in that it enabled FirstPlus to use its artificially inflated shares as currency which defendants planned to use to purchase other sources of revenue, including Life Financial Corp., which purchases were designed to enable FirstPlus to post the 1998 earnings growth claimed by defendants. Furthermore, in an effort to again reinflate FirstPlus' shares, defendants reassured investors that the company remained unaffected from the widespread problems in the specialty finance industry because of its strong internal controls and strategic planning. For example, defendants assured investors that FirstPlus was using ''conservative'' accounting practices and that its balance sheet remained strong. However, on Oct. 1, 1998, as the truth about FirstPlus' operations, impaired balance sheet and future prospects reached the market, FirstPlus' stock price fell by almost 40% to $5-3/4. Plaintiffs seek to recover damages on behalf of persons who purchased or otherwise acquired the publicly traded securities of FirstPlus during the Class Period (the ''Class''). They are represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 30 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's Web site at milberg.com. M$neyMade I N S I D E R T I P S tlhs@swbell.net