BOCA RATON, Fla., April 28, 2003 (PRIMEZONE) -- The Florida law firm of Vianale & Vianale LLP announces that it filed a class action lawsuit on April 8, 2003, on behalf of purchasers of the securities of Gainsco, Inc. (OTCBB:GNAC) between November 17, 1999 and February 7, 2002, inclusive. A copy of the complaint filed in this action is available from the Court, or can be viewed on Vianale & Vianale's website at: http://www.vianalelaw.com
The action (03-20854-CIV-LENARD/Simonton) is pending in the United States District Court, Southern District of Florida, 301 N. Miami Avenue, Miami, Florida, against defendants Gainsco, Inc., Glenn W. Anderson and Daniel J. Coots. The case is assigned to Judge Joan Lenard.
The complaint alleges that during the class period, defendants issued false and misleading statements to the marketplace that artificially inflated the price of Gainsco's shares. Specifically, on November 17, 1999, Gainsco, an insurance holding company, announced that it would acquire Tri-State, Ltd.'s privately owned insurance operation which specialized in nonstandard passenger automobile insurance. According to CEO Anderson, the Tri-State acquisition marked the Company's expansion of its passenger auto insurance business that began with Gainsco's earlier purchase of Miami-based Lalande Group. Anderson also told the public that the Company would integrate Tri-State's business with Lalande Group's underwriting and claims systems "to maximize service and cost efficiency." The transaction was expected to be "minimally accretive to earnings in 2000."
The Company's second-quarter Form 10-Q, filed in August 2000, stated that Gainsco had paid $1.15 million to Tri-State's former owners "based on a conversion goal and specific profitability targets," and falsely lulled the investment community into believing that Tri-State was profitable, when in fact it was not. Gainsco continued to issue highly positive statements throughout 2000 and 2001 and assured the public that it was resolved to "maintain a strong, disciplined balance sheet." On August 9, 2001, however, the Company announced that it was selling the agency operations of Tri-State and would take a $5.1 million write off from its original $6.0 million investment in Tri-State. This, however, was only a partial disclosure of Tri-State's problems and led investors to believe the worst was behind the Company. On August 14, 2001, the Company announced that it would sell Tri-State to its president, Herb Hill, for $900,000. On February 7, 2002, the end of the class period, Gainsco announced that it would discontinue writing commercial lines insurance business due to adverse claims development and unprofitable results." Gainsco's stock declined substantially on the news.
If you bought the securities of Gainsco between November 17, 1999 and February 7, 2002, you may, no later than June 27, 2003 move the Court to appoint you as lead plaintiff, a representative party that acts on behalf of other class members. The Court must determine whether the class member's claim is typical of other class members' claims, and whether the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Vianale & Vianale LLP, or other counsel of your choice, to serve as your counsel in this action.
Vianale & Vianale LLP is active in major litigations pending in federal and state courts. The firm's web site (http://www.vianalelaw.com) has more information about the firm.
If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact:
Kenneth J. Vianale, Esq. Julie Prag Vianale, Esq. 5355 Town Center Road, Suite 801 Boca Raton, Florida 33486 (561) 391-4900 e-mail: info@vianalelaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca