MILWAUKEE, Jan. 22, 2002 (PRIMEZONE) -- The law firm of Ademi & O'Reilly, LLP, announced that a federal class action lawsuit was filed on Friday, January 18, 2002, against each of Van Wagoner Funds, Inc. mutual funds. The suit was filed on behalf of purchasers of shares 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 02C0068, is pending in the United States District Court, Eastern District of Wisconsin, against each of the mutual funds managed by Van Wagoner Funds, Inc. These funds are Van Wagoner Emerging Growth (Nasdaq:VWEGX), Technology (Nasdaq:VWTKX), Mid-Cap Growth (Nasdaq:VWMCX), Micro-Cap Growth (Nasdaq:VWMDX), and Post-Venture (Nasdaq:VWPVX).
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. Defendants issued materially false and misleading statements concerning the Funds' net asset value ("NAV") and performance. These statements were materially false and misleading because (1) the NAV of the Funds were materially overstated as the Funds had overvalued a material portion of their holdings of certain private placement investments; (2) the Funds' performances were materially overstated as those figures were based on the Funds' NAV; and (3) the risk of investing in the Funds were materially understated as the Funds 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 Funds were not meaningful because they failed to advise investors that the Funds were materially overstating their NAV.
If you bought shares of the Emerging Growth Fund between April 28, 2000 and June 30, 2001, you may, no later than February 19, 2002, request that the Court appoint you as lead plaintiff. If you bought shares of the Technology, Mid-Cap Growth, Micro-Cap Growth or Post-Venture Funds between April 28, 2000 and June 30, 2001, you may, no later than March 19, 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.
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 , Robert O'Reilly, Esq.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca