BALTIMORE, May 2, 2001 (PRIMEZONE) -- Humphrey Hospitality Trust, Inc. (Nasdaq:HUMP), Penn Treaty American Corporation (NYSE:PTA), NCI Building Systems, Inc. (NYSE:NCS) and PartsBase.com, Inc. (Nasdaq:PRTS) are defendants in securities class actions now being pursued in federal courts. Law Offices Of Charles J. Piven, P.A. has filed these lawsuits within the past 60 days.
If you purchased stock in any of the companies listed above, you may be a member of the class, and you have until the dates specified below to ask the Court to become the lead plaintiff. To learn more about these lawsuits in particular, and your ability to become a lead plaintiff, you may contact Law Offices Of Charles J. Piven, P.A., without obligation or cost to you, at The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202,or by e-mail at pivenlaw1@erols.com or by calling (410) 986-0036. Law Offices Of Charles J. Piven, P.A. has been involved in shareholder class actions for more than twelve years.
Humphrey Hospitality Trust, Inc. (Nasdaq:HUMP) Class Period: November 14, 2000 through March 29, 2001 Deadline for filing Lead Plaintiff Motion: June 18, 2001
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of Humphrey securities. According to the complaint, Humphrey is a self-administered real estate investment trust ("REIT").
As of December 31, 2000 it owned 92 existing limited service hotels (the "Hotels") and one office building. The Hotels (containing approximately 6,400 rooms in 19 states) and office buildings are leased to Humphrey Hospitality Management, Inc. and its subsidiary Supertel Hospitality Management, Inc. (the "Lessee"). The complaint alleges that defendants conditioned the market to believe in the strength of Humphrey's financial condition, and that Humphrey's conservative fiscal policies meant that its dividend was secure.
The complaint further alleges that on March 29, 2001, the Company shocked the market by announcing that its Lessee advised that, without a substantial reduction in the rent, it would be unable to lease and operate the hotels; and that the Board of Directors had established "a committee of independent directors" to "explore alternatives available to the (Company)." Humphrey also announced that its dividend would be reduced for monthly payments subsequent to those payable to shareholders of record on March 30, 2001. Humphrey common stock opened at $7.0938 per share on March 29, 2001 and closed that day at $4.7812 that day on volume of 217,200 shares, approximately seven times its average volume. The complaint was filed in the U.S. District Court for the Eastern District of Virginia.
Penn Treaty American Corporation (NYSE:PTA) Class Period: November 7, 2000 through March 29, 2001 Deadline for filing Lead Plaintiff Motion: June 18, 2001
The complaint charges Penn Treaty, which underwrites and sells insurance products through its subsidiaries, with defrauding investors by issuing false and misleading statements about the company's financial health. According to the lawsuit, the defendants reported during the class period that the company was experiencing tremendous growth, and that the expansion was not jeopardizing its fiscal standing. In fact, Penn Treaty continued selling policies during its fourth quarter of 2000 despite an inability to maintain adequate reserve levels. Premiums grew by 22% during this period, but instead of the $40 million in reserves required by regulators, Penn Treaty had just $17.2 million in capital by the end of the year.
After a company announcement on March 30, 2001 stating its ability to remain solvent was at risk, Penn Treaty stock fell from a closing price of $17.46 on March 29, 2001 to $10.17 the next day - a 42% decline. By April 2, 2001, the company's stock price fell to nearly $3 a share. The complaint was filed in the United States District Court for the Eastern District of Pennsylvania.
NCI Building Systems, Inc. (NYSE:NCS) Class Period: August 25, 1999 through April 12, 2001 Deadline for filing Lead Plaintiff Motion: June 18, 2001
The lawsuit accuses NCI and two former top officers of knowingly or recklessly engaging in improper accounting practices that forced the company to restate its financial statements for the fiscal year that ended October 31, 2000, and for the quarter that ended January 31, 2001. In addition, the company said that those same "accounting errors" could result in changes to financial statements for the third and fourth quarters of 1999. News of the accounting irregularities sent NCI's share price down 32% -- from a closing price of $18.30 a share on April 12, 2001, to $12.45 a share at the close of the next trading day, April 16, 2001. The complaint was filed in the United States District Court for the Southern District of Texas.
PartsBase.Com, Inc. (Nasdaq:PRTS) Class Period: March 22, 2000 public offering through April 25, 2000 Deadline for filing Lead Plaintiff Motion: June 18, 2001
PartsBase, which runs online auctions for members to buy and sell aviation parts, is accused of misrepresentations and material omissions in documents pertaining to its Initial Public Offering. According to the complaint, the Registration Statement and Prospectus filed with the Securities and Exchange Commission (SEC) said that PartsBase had 13,000 subscribers, when it only had about 3,000. As a result, investors suffered millions of dollars in damages. PartsBase stock closed at $1.05 on April 23, 2001, far below the offering price of $13 per share. The complaint was filed in the United States District Court for the Southern District of Florida.
If you are an investor in any of the companies listed above, you may contact Law Offices Of Charles J. Piven, P.A. to discuss your rights regarding the appointment of lead plaintiff and/or your interest in the class action. To serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca