NEW YORK, Nov. 8, 2002 (PRIMEZONE) -- Kirby McInerney & Squire, LLP announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Ohio on behalf of all purchasers of OM Group, Inc. (NYSE:OMG) publicly traded securities during the period from April 25, 2002 to October 30, 2002 (the "Class Period").
Please visit our website, which offers summary and detailed information concerning the claims at www.kmslaw.com/new_cases/om_group/omg.htm, or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com.
The action charges OM Group, as well as its Chief Executive and Chief Financial Officers, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The violations, as the complaint alleges, stem from the issuance of allegedly false statements during the class period, which had the effect -- during the class period -- of artificially inflating the price of OM Group securities.
On October 29, 2002, OM Group shares lost 70% of their value -- falling $22 per share to close at $9 per share -- after announcing: (i) a large loss (due to a massive inventory write-down); (ii) plans for a thoroughgoing operational restructuring; and (iii) a review of its financial reporting. OM Group shares fell further -- to $6 per share -- when the company admitted that OM Group's CEO had sold all his holdings to cover a margin call on 710,000 OMG shares which he had used as collateral for a loan. The complaint alleges that OM Group -- during the class period -- falsely represented its financial results and operational state by failing to take needed inventory writedowns and by failing to inform investors that it was considering significantly altering certain of its (non-performing) operations.
As is alleged in the complaint, OM Group makes metal-based chemicals used in the aerospace, auto, and electronics industries. On July 30, 2002, the OM Group -- in announcing slightly worse-than-expected 2nd quarter 2002 financial results -- said that results for the 2nd half of 2002 would be adversely affected by low cobalt prices, and guided profit estimates downwards ($0.92 EPS for the third quarter; $3.64 EPS for the full year). During the conference call discussing the 2nd quarter results and the 3rd quarter projections, management repeatedly emphasized that OM Group was operationally excellent, and that its slightly-reduced financial guidance for the rest of the year was merely a function of management's prudent and "conservative picture on cobalt". On September 19, 2002, OM Group warned that 3rdQ 02 results would be slightly lower than previously issued financial guidance. On October 29, 2002, OM Group announced a third quarter loss of $2.52 per share, due to a $108 million writedown of its cobalt inventory (absent the writedown and certain non-recurring earnings, OM Group would have earnings approximately 40% below original guidance).
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 31, 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 http://www.primezone.com/ca