PHILADELPHIA, April 30, 2003 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of purchasers of CIT Group, Inc. ("CIT" ) (NYSE:CIT) common stock in or traceable to the Company's initial public offering (the "IPO" or "Offering") commenced on or about July 1, 2002, and who have been damaged thereby (the "Class Period").
The action, numbered 03cv3037, is pending in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York, NY 10007 against defendants CIT, Albert R. Gamper, Jr., CEO & President, and Joseph M. Leone, CFO. The case has been assigned to the Honorable John E. Sprizzo. A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please contact us by phone at 866-561-3600 (toll free) or by E-mail at susang@bernardmgross.com.
The Complaint charges CIT and certain of its officers and directors with violations of Section 11, 12 (a)(2) and 15 of the Securities Act of 1933 because CIT's IPO registration and prospectus (the "Prospectus") contained materially false and misleading statements of fact. The Complaint alleges, among other things, that the Prospectus falsely represented that CIT's reserves for losses in its telecommunications finance portfolio were "adequate" despite recent declines in the sector, which were expected to continue. In addition, the Prospectus further characterized as adequate CIT"s reserves for credit losses in general. According to the Complaint, these statements were materially false and misleading when made because, among other reasons, they failed to disclose that the Company's loan loss reserves for its finance portfolio in the telecommunications industry, and its loan portfolio in general, were materially deficient in light of material credit losses that had already been incurred. The Complaint further alleges that the Company's assets and shareholders' equity were overstated in the Prospectus by reason of the foregoing. On July 23, 2002, CIT announced that it took a $200 million charge to strengthen the telecommunications loan reserves that it represented were adequate only three weeks previously. On April 8, 2003, the price of CIT common stock closed at $17.40 per share, which is 24% lower that the IPO price of $23 share.
Plaintiff seeks to recover damages on behalf of Class members and is represented by the law firm of Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you purchased the common stock of CIT in or traceable to the July 1, 2002 IPO, you may, no later than June 9, 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. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters, PLEASE CONTACT
Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esq.
Deborah R. Gross, Esq.
1500 Walnut Street, Suite 600
Philadelphia, PA 19102
Telephone: 866-561-3600 (toll free) or 215-561-3600
E-mail: susang@bernardmgross.com or debbie@bernardmgross.com.
Website: http://www.bernardmgross.com