PHILADELPHIA, July 8, 2002 (PRIMEZONE) -- On June 24, 2002, the law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit in the United States District Court for the Southern District of New York against Allied Capital Management ("Allied " or the "Company") (NYSE:ALD) William L. Walton, its President, Chairman and Chief Executive Officer, Penni F. Roll, its Chief Financial Officer, and Allied's auditor, Arthur Anderson, LLP, on behalf of all persons that purchased the common stock between November 14, 2001 and May 16, 2002.
The complaint alleges that defendants violated the federal securities laws by making misstatements and/or omissions of material facts in the Company's public filings with the Securities and Exchange Commission ("SEC") and statements disseminated to the public.
Specifically, the complaint alleges that throughout the Class Period, defendants misstated the value of Allied's investments in various companies including Velocita Corp. and The Loewen Group, Inc. The misstatements were made in Allied's public filings with the SEC and statements to the public as a result of Allied's failure to "mark to market" or write-down investments that had substantially declined in value long after it had become apparent that such investments were being carried on Allied's books at values much higher than their true values. The complaint further alleges that Allied misstated its total assets in its financial statements by carrying its investments including Velocita Corp. and The Loewen Group, Inc. on its balance sheet at misleadingly high values.
Further, the complaint alleges that Allied's auditor, Arthur Andersen, LLP, violated the federal securities laws by issuing an unqualified opinion on Allied's financial statements for the year ended December 31, 2001, and by allowing its unqualified opinion to be incorporated by reference into Allied's 2001 Form 10-K, which was filed with the SEC on March 22, 2002.
When Allied's failure to "mark to market" these investments was revealed to the market on May 16, 2002, Allied's share price plummeted from its opening price of $26.44 to as low as $20.00 before closing at $23.20.
If you purchased Allied securities during the period from November 14, 2001 through May 16, 2002, inclusive, you may, no later than July 16, 2002, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Allied securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class
interests." In Re: IKON Offices Solutions Securities Litigation.
Civil Action No. 98-4286(E.D.Pa.) (partial settlement for
$111 million approved May, 2000).
"...(Y)ou have acted the way lawyers at their best ought to act.
And I have had a lot of cases...in 15 years now as a judge and I
cannot recall a significant case where I felt people were better
represented than they are here ... I would say this has been the
best representation that I have seen." In Re: Waste Management,
Inc. Securities Litigation, Civil Action No. 97-C 7709
(N.D. Ill.) (settled in 1999 for $220 million).
If you purchased Allied securities during the Class Period, please visit our website at www.bergermontague.com to view the complaint and join the class action or if you have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire
Barbara A. Podell, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca