BALA CYNWYD, Pa., March 6, 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 Southern District of Ohio, Western Division, on behalf of all purchasers of the common stock of Provident Financial Group Inc. (Nasdaq:PFGI) ("Provident" or the "Company") publicly traded securities during the period between April 14, 1998 and March 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 Provident Financial Group Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that defendants issued numerous statements and filed quarterly and annual reports with the SEC that described the Company's increasing revenues and financial performance. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had materially overstated its operating results by failing to properly account for certain off-balance sheet transactions. Specifically, the Company failed to properly account for auto financing leases which caused it to overstate its earnings; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) as a result of the foregoing, the Company's financial statements issued during the Class Period were materially false and misleading. Indeed, the Company, by restating its financial statements, has now admitted that its previously issued financial statements were materially false and misleading.
On March 5, 2003, before the open of the market, Provident shocked the market by announcing that it would be restating its financial results for fiscal years 1997 through 2002. The Company attributed the accounting issues to "nine auto lease financing transactions originated between 1997 and 1999." The Company also revealed that it had restated its total assets for 1997 through 2002 -- increasing its net assets for each year (by understating assets, the Company materially overstated its return on assets, a key operating metric for banks). In addition, the Company reported that it was reducing its earnings guidance for fiscal year 2003, as a result of the accounting problem. In response to the announcement of the earnings restatement, the price of Provident stock dropped from $28.07 per share to $22.46 per share in heavy trading.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about 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 May 5, 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