BALA CYNWYD, Pa., Oct. 14, 2002 (PRIMEZONE) -- A pending class action charges Metris Companies, Inc. ("Metris" or the "Company") (NYSE:MXT) with misleading investors about its business and financial condition according to the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the District of Minnesota. Plaintiff seeks damages for violations of the federal securities laws on behalf of all investors who purchased Metris Companies, Inc. securities between November 5, 2001 and July 17, 2002 (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 Metris Companies, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at www.sbclasslaw.com/cgi/signup.cgi.
Metris is in the business of providing financial products and services, including issuing and managing credit cards through its wholly owned subsidiary, Direct Merchants Credit Card Bank, N.A. ("Direct Merchants"). The complaint alleges that the Minnesota-based Metris Companies, Inc. misled the investing community concerning the existence of a Report of Examination (the "ROE") released by the Office of the Comptroller of the Currency (the "OCC"), the primary federal regulator of Direct Merchants. Moreover, the Complaint charges that defendants misled the investing community regarding the adverse material effect the ROE would have on Metris' financial condition.
The Complaint also alleges that the OCC released the ROE to defendants on November 5, 2001, but that defendants failed to reveal the existence of the ROE to the public until April 17, 2002, and thereafter misrepresented the effect it would have on Metris. As outlined in the Complaint, the findings of the ROE were ultimately addressed in a consent agreement between Direct Merchants and the OCC, and obligated Direct Merchants to restructure significant parts of its operations including its credit policies, credit risk assessment, debt forbearance, allowance for loan and lease losses and internal controls. The Complaint further alleges that as a result of defendants' actions, plaintiff and the Class were damaged.
If you purchased Metris Companies, Inc. securities between November 5, 2001 and July 17, 2002, you may be a member of the class and have until November 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