NEW YORK, June 2, 2005 (PRIMEZONE) -- The deadline is approaching for investors to seek appointment by the Court as lead plaintiff in the case filed by Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) on behalf of purchasers of securities of Friedman, Billings, Ramsey Group, Inc. ("FBR" or the "Company") (NYSE:FBR). The case, Civil Action Number 05 CV 4851, was filed in the United States District Court, Southern District of New York, and has been assigned to Judge Thomas P. Griesa. Investors are reminded that the deadline is July 11, 2005, for purchasers of the securities of FBR during the period from January 29, 2003 through April 25, 2005.
The Complaint charges that FBR and certain of its top former officials, including Emanuel J. Friedman, who was its Co-Chief Executive Officer and Co-Chairman during the relevant time, violated the Securities Exchange Act of 1934 (Section 10(b) and rule 10b-5 promulgated thereunder) by making materially misleading statements and omissions about the Company. Defendants failed to disclose misconduct by FBR's top officials in connection with the Company's role as a placement agent for CompuDyne Corp in a 2001 private investment placement equity transaction ("PIPE"); related insider trading; and the material adverse impact on FBR's earnings. FBR has offered to pay a penalty of $3.5 million to the SEC and a $4 million fine to the NASD to settle any charges arising from its activities relating to the CompyDyne PIPE transaction. The agencies have yet to accept that settlement offer.
After the filing of the Complaint, the May 26, 2005 issue of the Washington Post reported that the SEC and NASD were considering civil litigation against Emanuel J. Friedman and two other former FBR officials based on alleged insider trading in CompuDyne stock.
A lead plaintiff acts on behalf of other class members in overseeing and directing the litigation. The Court must determine that the claim of the lead plaintiff is typical of the claims of other class members, and that the lead plaintiff will adequately represent the class. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.