BALA CYNWYD, Pa., Oct. 14, 2002 (PRIMEZONE) -- A pending class action charges FleetBoston Financial Corporation (NYSE:FBF) ("FleetBoston") 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 Court of New Jersey. Plaintiff seeks damages for violations of the federal securities laws on behalf of all investors who purchased FleetBoston Financial Corporation securities in connection with the merger between Summit and FleetBoston which was completed on or about March 1, 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 FleetBoston Financial Corporation and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Massachusetts-based FleetBoston Financial Corporation filed a Registration Statement with the Securities and Exchange Commission on January 25, 2001 and the Joint Proxy Statement and Prospectus included within the Registration Statement (collectively, the "Merger Proxy/Prospectus"), incorporated by reference FleetBoston's Form 10-K for its year ending December 31, 1999, and its Form 10-Qs for the three months ending March 31, 2000, June 30, 2000, and September 30, 2000 ("Incorporated Filings"). The Complaint alleges that the Incorporated Filings contained falsely positive and misleading information about FleetBoston's success in Latin American markets, in particular Argentina, and that the Incorporated Filings contained false financial information regarding FleetBoston's earnings stemming from its Argentinian operations and its reserves for credit losses related to loans in Argentina. This information was material to Summit shareholders considering how to vote on the Merger, including whether the Exchange Ratio accurately reflected the value of FleetBoston common stock. Starting in January 2002 and continuing into 2002, after the Merger was complete and Summit shareholders had already tendered their shares, FleetBoston shocked its investors by taking charges for credit losses on loans in Argentina amounting to approximately $2.3 billion.
Defendants are the officers and/or directors of the FleetBoston who signed the Registration Statement. As a result of defendants' false statements, misrepresentations, and omissions, the price of FleetBoston securities was artificially inflated at the time of the Merger. FleetBoston shares reached a closing price of $41.00 per share on March 1, 2001, the closing date of the Merger.
If you purchased FleetBoston Financial Corporation securities in connection with the merger between Summit and FleetBoston which was completed on or about March 1, 2001, 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