NEW YORK, March 11, 2002 (PRIMEZONE) -- A securities class action lawsuit was filed on behalf of all persons who acquired PNC Financial Services Group, Inc. (NYSE:PNC) common stock between July 19, 2001 to January 29, 2002 inclusive (the "Class Period"). A copy of the complaint is available for the Court or from Abbey Gardy, LLP. Please contact Nancy Kaboolian, Esq. or Jennifer Haas by phone at (800) 889-3701 or by email at Nkaboolian@abbeygardy.com or Jhaas@abbeygardy.com.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between July 19, 2001 and January 29, 2002, thereby artificially inflating the price of PNC securities. The complaint alleges that, throughout the Class Period, defendants issued multiple press releases reporting PNC's quarterly financial performance, and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). These reports positively portrayed PNC's performance during the Class Period. As alleged in the complaint, however, these statements were materially false and misleading because the Company was engaged in improper and/or suspect accounting practices which affected the accuracy of its financial results and that, contrary to the statements in documents filed with the SEC during the Class Period, PNC's financial statements issued during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles.
Defendants failed to properly consolidate liabilities associated with three subsidiaries PNC had established with American Insurance Group ("AIG"). Throughout the Class Period, defendants misrepresented PNC's earnings as well as the Company's ability to reduce its liabilities related to non-performing assets. In fact, defendants' failure to conform with proper accounting standards produced inflated earnings and misled investors as to PNC's true financial condition. The complaint further alleges that while acting as auditor and a consultant for PNC, E&Y was also acting as a consultant for AIG. In fact, as PNC's auditor, E&Y approved PNC's transactions with AIG while at the same time acting as an "accounting adviser" to AIG. E&Y drew up the financial structure for the subsidiaries in question and approved them for implementation by AIG. E&Y also issued a letter that helped AIG pitch its product to banks.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired common stock during the Class Period. If you are a member of the above mentioned class, you may, no later than April 2, 2002, move the Court to serve as lead plaintiff in the matter. 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 plaintiffs." 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 Abbey Gardy, LLP, or other counsel of your choice to serve as your counsel in this matter.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. or Jennifer Haas of Abbey Gardy, LLP at (800) 889-3701 or email JHaas@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca