NEW YORK, May 22, 2002 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all purchasers of Allied Capital Corp. (NYSE:ALD) stock during the period from November 14, 2001 through May 16, 2002 (the "Class Period"). The action seeks to recover losses suffered by such investors.
A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please visit our Website, which offers summary and detailed information concerning the case at www.kmslaw.com/new_cases/allied_capital/allied.htm, or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com.
The complaint alleges that Allied Capital Corp., as well as Allied Capital's auditor Arthur Andersen, LLP and Allied Capital's Chief Executive and Chief Financial Officers, violated Section 10(b) of the Securities and Exchange Act of 1934. The alleged violations, according to the complaint, stem from materially false and misleading financial statements issued by the defendants during the Class Period that, as detailed below: (i) misrepresented Allied Capital's assets and financial performance; and (ii) caused Allied Capital stock to trade at artificially-inflated prices.
The complaint alleges that defendants, during the class period, misstated the value of Allied Capital's investments - and inflated the level of assets reported by Allied Capital - as a result of failing to write-down certain investments that had substantially declined in value. As the complaint alleges, defendants continued to value certain investments - including the company's stakes in Velocita Corp. and the Loewen Group, Inc. - at or near their original cost long after it had become apparent that such valuations were outdated and no longer reflective of the true worth of the investments. The complaint further alleges that Arthur Andersen, LLP violated the federal securities laws by certifying Allied's financial statements and by allowing its unqualified opinion to be incorporated by reference into Allied's filings with the SEC after it was readily apparent that investments on Allied's balance sheet, including Allied's investments in Velocita Corp. and Loewen Group, Inc., were being carried at unrealistically and misleadingly high values. When these valuation issues were first revealed to the market on May 16, 2002, the complaint alleges, Allied's share price plummeted from its opening price of $26.44 to as low as $20.00 before closing at $23.20.
Plaintiffs are represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's Website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than July 16, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq. Orie Braun KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: obraun@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca