CHICAGO, Feb. 15, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that on February 15, 2002, it filed a class action lawsuit on behalf of investors who, between April 28, 2000 and June 30, 2001, purchased shares of any of the following Van Wagoner funds (the "Funds"):
-- Van Wagoner Emerging Growth Fund (Nasdaq:VWEGX), -- Van Wagoner Technology Fund (Nasdaq:VWTKX), -- Van Wagoner Mid-Cap Growth Fund (Nasdaq:VWMDX), -- Van Wagoner Post Venture Fund (Nasdaq:VWPVX) and -- Van Wagoner Micro-Cap Growth Fund (Nasdaq:VWMCX).
The Complaint alleges that during the Class Period defendants filed a registration statement and annual report with the Securities and Exchange Commission that purported to report the Funds' net asset value ("NAV") and performance. These representations, however, were materially false and misleading because defendants had materially overvalued certain private companies held by the Funds, thereby inflating the Funds' NAV and causing the price of the Funds' shares to be artificially inflated throughout the Class Period. The Complaint further alleges that Ernst & Young, LLP failed to follow Generally Accepted Accounting Practices and Generally Accepted Auditing Standards by specifically approving the valuations of net assets utilized by Van Wagoner between the end of 1999 and the end of 2000.
On June 30, 2001, defendants' gross overvaluation of the private placement investments was disclosed when Van Wagoner Funds, Inc. filed its Semi-Annual Report for the year 2001. The Semi-Annual Report revealed that defendants revalued nine such private placement investments that they 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%. Following the revaluations of the private placement investments, the Funds' per share prices all experienced a severe decline with particular Funds losing as much as 40% of their per share value.
Plaintiffs' action is brought against Van Wagoner Funds, Inc., Van Wagoner Capital Management, Inc., Sunstone Financial Group, Inc., the Funds, Garrett R. Van Wagoner, Larry P. Arnold, Robert S. Colman, Peter R. Kris and Ernst & Young, LLP. It alleges that defendants violated the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940 and the Investment Company Act of 1940. The Complaint is numbered 02-C-01777, and it is pending in the United States District Court for the Eastern District of Wisconsin.
Plaintiffs have retained Much Shelist to recover damages on behalf of all those who purchased or otherwise acquired shares of the Funds from April 28, 2000 through June 30, 2001. If you wish to serve as lead plaintiff, you must, no later than March 19, 2002 (and in the case of investors in the Emerging Growth Fund, no later than 60 days from December 18, 2001), 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. 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.
If you are a member of this class and have any questions concerning this notice or your rights and interests regarding this matter or would like a copy of the complaint please contact Carol V. Gilden, Michael J. Freed or Michael E. Moskovitz by telephone at (800) 470-6824, via e-mail at cgilden@muchlaw.com, mfreed@muchlaw.com or mmoskovitz@muchlaw.com or visit our website at http://www.muchlaw.com. Your e-mail should refer to Van Wagoner Funds.
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca