PHILADELPHIA, May 24,2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (http://www.investorprotect.com), filed a class action complaint in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased Penn Treaty American Corporation ("Penn Treaty") (NYSE:PTA) securities during the period from November 7, 2000 through March 29, 2001, inclusive.
Penn Treaty underwrites, markets and sells individual accident and health insurance products. The Complaint asserts that Penn Treaty defrauded its investors by reporting during the Class Period that the Company was experiencing substantial growth that would not affect its fiscal well-being. In fact, Penn Treaty did not disclose during the Class Period that its reserves were well less than the amount required by regulators, causing it to face possible liquidation. When the Company announced on March 30, 2001 that its ability to remain solvent was at risk, the price of Penn Treaty stock dropped 42% in one day.
The Complaint charges Penn Treaty and its senior officers with violations of sections 10 and 20(a) of the Securities and Exchange Act of 1934 for materially false and misleading statements and filings with the SEC.
If you purchased Penn Treaty securities during the period from November 7, 2000 through March 29, 2001, inclusive, you may, no later than June 18, 2001, move to be appointed lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order 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. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery, is not, however, affected by the decision whether or not to serve as a lead plaintiff.
The law firm of Berger & Montague, P.C. has more than 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 Penn Treaty securities, or have any questions concerning this notice or your rights with respect to this matter, you may contact:
Sherrie R. Savett, Esquire Karen S. Orman, 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.investorprotect.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