BALA CYNWYD, Pa., Jan. 11, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Eastern District of Wisconsin (02-C-0014) claims that Van Wagoner Emerging Growth Fund (Nasdaq:VWEGX) issued false and misleading statements concerning the Fund's net asset value ("NAV") and performance.
Plaintiff seeks damages for violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 on behalf of all investors who bought Van Wagoner Emerging Growth Fund securities between April 28, 2000 and June 30, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Van Wagoner Emerging Growth Fund and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that Van Wagoner Emerging Growth Fund issued false and misleading statements to the public about Ernst & Young, LLP failing to follow Generally Accepted Accounting Practices and Generally Accepted Auditing Standards by specifically approving the changes in net assets utilized by Van Wagoner between the end of 1999 and the end of 2000. 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 its 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 two holdings by precisely 50% or 75%. During the class period, the Fund's value decreased by approximately 75%.
If you purchased Van Wagoner Emerging Growth Fund securities during the period April 28, 2000 and June 30, 2001, you may be a member of the class and have until February 16, 2002 to move the court to become a lead plaintiff. 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 Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca