LOS ANGELES, Dec. 4, 2002 (PRIMEZONE) -- Glancy & Binkow LLP -- the first firm to file a class action lawsuit against The St. Paul Companies based upon recent events -- announces 13 days remaining to move to be a lead plaintiff in the shareholder lawsuit. All persons and institutions who purchased securities of The St. Paul Companies ("St. Paul" or the "Company") (NYSE:SPC) between November 5, 2001 and July 9, 2002, inclusive (the "Class Period"), may move the Court not later than December 17, 2002, to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to receive a copy of the Complaint, discuss this action, or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
The Complaint charges St. Paul, Chief Executive Officer J. S. Fishman and Chief Financial Officer Thomas A. Bradley with violations of federal securities laws. Among other things, plaintiff claims that defendants' omissions and misleading statements concerning St. Paul's exposure to asbestos claims liability caused St. Paul's stock price to become artificially inflated, inflicting damages on investors. 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"). Plaintiff claims that although trial of the Western MacArthur litigation commenced in approximately March 2002, the Company first disclosed the existence of the litigation on or about May 15, 2002, but did not disclose or quantify the amount or general magnitude of potential exposure to liability which St. Paul might suffer as a result of the litigation, nor did the Company increase its reserves at that time. 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 was 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, and that 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.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting shareholder lawsuits, and substantial expertise in actions involving corporate fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.