PHILADELPHIA, Aug. 15, 2002 (PRIMEZONE) -- On August 14, 2002, a class action lawsuit was filed by the Law Offices Bernard M. Gross in the United States District Court for the Northern District of Illinois, Eastern Division on behalf of all persons and entities who purchased or otherwise acquired the common stock of Aon Corporation ("AON" or the "Company") (NYSE:AOC) between May 4, 1999 and August 6, 2002.
The action, numbered 02-CV-5805, is pending in the United States District Court, Northern District of Illinois, located at 219 S. Dearborn Street, Illinois against defendants Aon, Patrick G. Ryan, and Harvey N. Medvin. The Honorable John W. Darrah is presiding over the case. A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please visit our website at http://www.bernardmgross.com or contact us by phone at 866-561-3600 (toll free) or by E-mail at susang@bernardmgross.com.
The Complaint charges Aon, Patrick G. Ryan, Chairman and Chief Executive Officer and Harvey N. Medvin, Chief Financial Officer and Executive Vice President, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by issuing a series of materially false and misleading statements to the market during the Class Period. As alleged in the Complaint, throughout the Class Period, defendants failed to disclose the following adverse facts: (i) that the Company had materially overstated its net income by $27 million in 1999, by $24 million in 2000 and by $5 million in the first quarter of 2002; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) that as a result, the value of the Company's net income and financial results were material overstated at all relevant times.
On August 7, 2002, before the market opened for trading, Aon shocked the market when it announced that: (a) it had failed to meet analysts' expectations on its earnings for the second quarter by a wide margin; (b) because of the slumping financial markets, it had canceled a spinoff of its insurance underwriting businesses to shareholders; and (c) the SEC had begun an investigation and questioned several items in the Company's accounts, including the reporting of investment write-downs, the timing of some costs and a reinsurance recoverable item and the decision not to consolidate certain special purpose vehicles. Aon also stated that, if the SEC says it is necessary, it will have to restate its earnings for the past three years, and reduce its net income by $27 million in 1999, by $24 million in 2000 and by $5 million in the first quarter of 2002.
Following this report, shares of Aon fell $6.43 per share to close at $14.77 per share, a one-day decline of 30.3%.
Law Offices Bernard M. Gross, P.C. has significant experience and expertise in prosecuting class actions and has recently filed cases in the following:
COMPANY SYMBOL PURCHASED DURING LEAD PLAINTIFF
CLASS PERIOD FILING DEADLINE
Amdocs Ltd DOX-NYSE 7/24/01-6/20/02 8/23/02
Aon AOC-NYSE 5/4/99-8/6/02 10/7/02
Corporation
Baxter BAX-NYSE 1/24/02-7/18/02 10/7/02
Int'l Inc.
Capital One COF-NYSE 1/15/00-7/16/02 9/17/02
Financial
Corporation
Citigroup, Inc. C-NYSE 7/24/99-7/23/02 9/23/02
Cross Media XMM-NYSE 11/5/01-7/11/02 9/16/02
Marketing
Corporation
Eclipsys ECLP-NASDAQ 7/23/01-6/27/02 9/27/02
Corporation
Flextronics FLEX-NASDAQ 10/20/01-6/4/02 8/19/02
Int'l Ltd.
Insight NSIT-NASDAQ 4/26/02-7/17/02 9/27/02
Enterprises, Inc.
Merck & Co. MRK-NYSE 7/1/99-6/21/02 8/30/02
Merrill Lynch MER-NYSE 3/9/00-4/11/02 8/30/02
& Co
PerkinElmer, Inc. PKI-NYSE 7/15/01-4/11/02 9/6/02
Touch America TAA-NYSE 1/30/01-11/14/02 8/26/02
f/k/a Montana
Power Company
Plaintiff seeks to recover damages on behalf of Class members and is represented by the law firm of Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you bought the common stock of Aon Corporation, between May 4, 1999 and August 6, 2002, you may, no later than October 7, 2002, 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 rights or interests with respect to these matters,
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C. Deborah R. Gross, Esquire Susan Gross, Esquire 1515 Locust Street, Second Floor Philadelphia, PA 19102
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca