LOS ANGELES, Sept. 23, 2002 (PRIMEZONE) -- A class action lawsuit was filed today in the United States District Court for the District of Minnesota on behalf of purchasers of Metris Companies, Inc. ("Metris" or the "Company") (NYSE:MXT) securities between Nov. 5, 2001 and July 17, 2002, inclusive (the "Class Period").
Metris is in the business of providing financial products and services, including issuing and managing credit cards through its wholly owned subsidiary, Direct Merchants Credit Card Bank, N.A. ("Direct Merchants"). The Complaint charges that the Company and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5). The action alleges that defendants issued a series of false and misleading statements concerning the Company's financial condition. Specifically, defendants misled the investing community concerning the existence of a Report of Examination (the "ROE") released by the Office of the Comptroller of the Currency (the "OCC"), the primary federal regulator of Direct Merchants. Moreover, the Complaint charges that defendants misled the investing community regarding the adverse material effect the ROE would have on Metris' financial condition.
The Complaint alleges that the OCC released the ROE to defendants on November 5, 2002, but that defendants failed to reveal the existence of the ROE to the public until April 17, 2002, and thereafter misrepresented the effect it would have on Metris. As outlined in the Complaint, the findings of the ROE were ultimately addressed in a consent agreement between Direct Merchants and the OCC, and obligated Direct Merchants to restructure significant parts of its operations including its credit policies, credit risk assessment, debt forbearance, allowance for loan and lease losses and internal controls. The Complaint further alleges that as a result of defendants' actions, plaintiff and the Class were damaged.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Stull, Stull & Brody, which has significant experience and expertise in prosecuting class actions on behalf of investors.
If you purchased Metris securities between November 5, 2001 and July 17, 2002, inclusive, you may be a member of the class and have until November 19, 2002 to move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Stull Stull & Brody, or counsel of your choice.
If you have any questions concerning this notice or your rights or interests with respect to this matter, please contact Michael Braun or Patrice Bishop of Stull, Stull & Brody toll free at 888-388-4605 or via e-mail at info@secfraud.com or visit the firm's Website at www.secfraud.com.