BALA CYNWYD, Pa., Feb. 14, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Tennessee on behalf of all purchasers of the common stock of UnumProvident Corporation ("UnumProvident") (NYSE:UNM) publicly traded securities during the period between May 7, 2001 and February 4, 2003 , inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges UnumProvident Corporation and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that during the Class Period, defendants caused UnumProvident's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. The Company failed to properly record the impairment to its investments and operated "long-term denial factories," causing the Company's financial results to be inflated. As a result, the Company's shares traded at inflated prices enabling UnumProvident to raise proceeds of $250 million on June 13, 2002 in its bond offering.
UnumProvident and its top officers inflated the prices of the Company's securities in order to pursue an accelerated securities sale program. Defendants knew that by concealing UnumProvident's true financial results they could foster the perception in the business community that UnumProvident was a "growth company," i.e., it was the only way UnumProvident could post the revenue and earnings per share growth claimed by defendants. On February 5, 2003, UnumProvident announced that it had recorded investment losses of $93 million and also reported that it was responding to Securities and Exchange Commission requests for information relating to its investment disclosures.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which prosecutes class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than April 14, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.