MILWAUKEE, Dec. 18, 2001 (PRIMEZONE) -- The law firm of Ademi & O'Reilly, LLP announces that a class action lawsuit was filed on December 17, 2001 on behalf of purchasers of shares of the Van Wagoner Emerging Growth Fund (Nasdaq:VWEGX)(the "Fund") between April 28, 2000 and June 30, 2001, inclusive. A copy of the complaint is available from Ademi & O'Reilly, LLP, or the District Court Clerk's Office.
The action, numbered 01C1264, is pending in the United States District Court, Eastern District of Wisconsin against defendants Van Wagoner Funds, Inc., Van Wagoner Capital Management, Inc., Sunstone Financial Group, Inc., Van Wagoner Emerging Growth Fund, Garrett R. Van Wagoner, Larry P. Arnold, and Robert S. Colman. The Honorable Charles N. Clevert is the Judge presiding over the case.
The complaint alleges that defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 by issuing materially false and misleading Registration Statements and Prospectuses. As alleged in the Complaint, defendants issued materially false and misleading statements concerning the Fund's net asset value ("NAV") and performance. These statements were materially false and misleading because (1) the NAV of the Fund was materially overstated as the Fund had overvalued a material portion of their holdings of certain private placement investments; (2) the Fund's performance was materially overstated as those figures were based on the Fund's NAV, which figures were materially overstated because the Fund had materially overstated NAV; and (3) the risk of investing in the Fund was materially understated as the Fund had failed to disclose the true risk attendant to its portfolio securities and specifically the private placement investments. Accordingly, defendants' statements about the risks associated with investing in the Fund were not meaningful because they failed to advise investors that the Fund was materially overstating its NAV.
On June 30, 2001, defendants' gross overvaluation of the private placement investments was disclosed when defendants revalued nine such private placement investments originally valued at $28.6 million on December 31, 2000 to a total of $9.00 and marked down an additional 2 holdings by precisely 50% or 75%. During the class period, the Fund's value decreased by approximately 75%.
If you bought shares of the Fund between April 28, 2000 and June 30, 2001, you may, no later than February 16, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. One or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by serving as a lead plaintiff. You may retain Ademi & O'Reilly, LLP, or other counsel of your choice.
Ademi & O'Reilly is active in major litigation pending in federal and state courts throughout the United States, including the Heartland Municipal Bond mutual funds litigation. If you wish to discuss this action with us, or have any questions concerning this notice of your rights and interests, please contact Ademi & O'Reilly, LLP, vanwagoner@ademilaw.com; (866) 264-3995.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.