New York, Oct. 31, 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 District of Minnesota on behalf of all purchasers of The St. Paul Companies (NYSE:SPC) common stock during the period from November 5, 2001 to July 9, 2002 (the "Class Period").
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/st_paul/spc.htm, or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com.
The action charges St. Paul, Chief Executive Officer J.S. Fishman and Chief Financial Officer Thomas A. Bradley with violations of Sections 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and of Rule 10(b)-5 promulgated thereunder, and charges the individual defendants with violation of 20(a) of the Exchange Act. The violations stem from defendants' alleged omissions and misleading statements concerning St. Paul's exposure to asbestos claims liability, which had the effect of artificially inflating St. Paul's stock price during the Class Period.
The complaint alleges that during the Class Period, defendants failed to make adequate disclosures or take adequate reserves concerning litigation filed in 1993 in California state court known as Western MacArthur Co. et al. v. United States Fidelity & Guaranty Co., et al., Case No. 721595-7 (consolidated with Case No. 828101-2, Superior Court of California, Alameda County) (the "Western MacArthur litigation"). According to the complaint, although trial of the Western MacArthur litigation commenced in approximately March 2002, the Company did not disclose the existence of the litigation until May 15, 2002, and even then the Company neither increased its reserves nor quantified the amount or general magnitude of potential exposure to liability which St. Paul might suffer as a result of the litigation. On June 3, 2002, the Company announced that a settlement had been reached whereby St. Paul would pay almost $1 billion to satisfy the claims reflected in the litigation, although the Company's SEC filings stated that as of December 31, 2001, the Company's net reserves for asbestos claims were only $367 million.
The complaint charges that the Company tried to disguise the impact of the Western MacArthur litigation settlement by focusing on the alleged after-tax impact of the litigation and falsely claiming that $150 million of the litigation payments could be charged to the Company's reserves. According to the complaint, a subsequent SEC filing by the Company reflected St. Paul's failure to take adequate reserves for its potential liability in the litigation. News of the Western MacArthur litigation settlement caused the price of the Company's stock to decline during the Class Period from a high of $49.20 on November 5, 2001 to a low of $34.65 on July 9, 2002, the last day of the Class Period.
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 December 17, 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.