PHILADELPHIA, Sept. 27, 2002 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action has been filed in the United States District Court for the District of Minnesota on behalf of purchasers of Metris Companies, Inc. ("Metris" or the "Company") (NYSE:MXT) publicly traded securities during the period between November 5, 2001 and July 16, 2002, inclusive (the "Class Period").
The complaint alleges that Metris misled the investing community concerning the existence of a Report of Examination (the "ROE") released by the Office of the Comptroller of the Currency (the "OCC"), the primary federal regulator of Direct Merchants. Moreover, the Complaint charges that defendants misled the investing community regarding the adverse material effect the ROE would have on Metris' financial condition.
The Complaint also alleges that the OCC released the ROE to defendants on November 5, 2001, but that defendants failed to reveal the existence of the ROE to the public until April 17, 2002, and thereafter misrepresented the effect it would have on Metris. The findings of the ROE were ultimately addressed in a consent agreement between Direct Merchants and the OCC, and obligated Direct Merchants to restructure significant parts of its operations including its credit policies, credit risk assessment, debt forbearance, allowance for loan and lease losses and internal controls. The Complaint further alleges that as a result of defendants' actions, plaintiff and the Class were damaged.
If you purchased Metris securities during the Class Period, you may, no later than November 19, 2002 move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Metris securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.