BALA CYNWYD, Pa., Feb. 22, 2002 (PRIMEZONE) -- A shareholder class action lawsuit now pending in federal court in Wisconsin Van Wagoner Technology Fund (Nasdaq:VWTKX); Van Wagoner Mid-Cap Growth Fund (Nasdaq:VWMDX); Van Wagoner Post-Venture Fund (Nasdaq:VWPVX); Van Wagoner Micro-Cap Growth Fund (Nasdaq:VWMCX) (the "Funds "); Sunstone Financial Group, Inc., Garrett R. Van Wagoner, Larry P. Arnold, Robert S. Colman and Ernst and Young, LLP with misleading investors about its business and financial condition according to the law firm of Schiffrin & Barroway, LLP.
The complaint seeks damages for violations of the federal securities laws on behalf of all investors who Van Wagoner Funds, Inc., Van Wagoner Capital Management, Inc., Van Wagoner Technology Fund, Van Wagoner Mid-Cap Growth Fund, Van Wagoner Post-Venture Fund, and Van Wagoner Micro-Cap Growth Fund between April 28, 2000 and June 30, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Van Wagoner Funds, Inc., Van Wagoner Capital Management, Inc., Van Wagoner Technology Fund, Van Wagoner Mid-Cap Growth Fund, Van Wagoner Post-Venture Fund, and Van Wagoner Micro-Cap Growth Fund and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at www.sbclasslaw.com.
The complaint alleges that the Van Wagoner Funds, Inc., Van Wagoner Capital Management, Inc., Van Wagoner Technology Fund, Van Wagoner Mid-Cap Growth Fund, Van Wagoner Post-Venture Fund, Van Wagoner Micro-Cap Growth Fund, Sunstone Financial Group, Inc., Garrett R. Van Wagoner, Larry P. Arnold, Robert S. Colman and Ernst and Young, LLP issued false and misleading statements concerning the Funds' net asset value ("NAV") and performance. Specifically, the complaint alleges that Defendants made materially false and misleading statements regarding the Funds' NAV calculation, value of its Private Placement Investments, investment limitations and risks. In addition, Ernst & Young, LLP failed to follow Generally Accepted Accounting Practices and Generally Accepted Auditing Standards by specifically approving the changes in net assets utilized by Van Wagoner between the end of 1999 and the end of 2000. These statements were materially false and misleading because (1) the NAV of the Funds were materially overstated as the Funds had overvalued a material portion of their holdings of certain private placement investments; (2) the Funds' performance was materially overstated as those figures were based on the Funds' NAV, which figures were materially overstated because the Funds had materially overstated NAV; and (3) the risk of investing in the Funds was materially understated as the Funds had failed to disclose the true risk attendant to its portfolio securities and specifically the private placement investments. Accordingly, defendants' statements about the risks associated with investing in the Funds were not meaningful because they failed to advise investors that the Funds were materially overstating their NAV.
On June 30, 2001, defendants' gross overvaluation of the private placement investments in the Funds was disclosed when defendants revalued nine such private placement investments, held in varying amounts by the Funds, originally valued at $28.6 million in total on December 31, 2000 to a total of $9.00, and marked down additional holdings by approximately 50% to 75%. Following the revaluations of these private placement investments the Funds' per share prices would all experience a severe decline with particular funds losing as much as 40% of their per share value.
On June 30, 2001, defendants' gross overvaluation of the private placement investments in the Funds was disclosed when defendants revalued nine such private placement investments, held in varying amounts by the Funds, originally valued at $28.6 million in total on December 31, 2000 to a total of $9.00, and marked down additional holdings by approximately 50% to 75%. Following the revaluations of these private placement investments the Funds' per share prices would all experience a severe decline with particular funds losing as much as 40% of their per share value.
If you purchased Van Wagoner Technology Fund, Van Wagoner Mid-Cap Growth Fund, Van Wagoner Post-Venture Fund, or the Van Wagoner Micro-Cap Growth Funds April 28, 2000 and June 30, 2001, you may be a member of the class and have until March 19, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca