NEW YORK, Jan. 31, 2003 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit in the United States District Court for the Northern District of Ohio, Western Division, on behalf of all purchasers of the common stock or preferred stock of Owens Corning Inc. (OTCBB:OWENQ) during the period from September 20, 1999 through October 5, 2000 (the "Class Period").
A copy of the complaint in the action, Greenburg v. Hiner et al., No. 03 Civ 7036 (N.D. Ohio) is available from the Court or from Kirby McInerney & Squire. Please visit our website, which offers summary and detailed information concerning the case at www.kmslaw.com/new_cases/owens_corning/oc.htm , or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com.
The complaint asserts claims for violation of Section 10(b) and 20(a) of the Securities and Exchange Act of 1934 against five Owens Corning executives, including Owens Corning's Chief Executive Officer, two Chief Financial Officers, and Comptroller, as well as one Owens Corning director. Due to the automatic stay of proceedings afforded by Owens Corning's bankruptcy filing, Owens Corning is not named as a defendant in this action. The alleged violations, according to the complaint, stem from materially false and misleading statements made by the defendants during the Class Period that, as detailed below: (i) materially misrepresented Owens Corning's financial health and performance; thereby (ii) causing Owens Corning stock to trade at artificially-inflated prices.
The complaint charges that defendants described Owens Corning's financial viability in two different ways to different audiences at the same time. At the very same time that the defendants were publicly representing that Owens Corning's National Settlement Program (the "NSP") -- implemented by Owens Corning in 1999 in order to extinguish Owens Corning's asbestos liabilities -- was effectively managing and extinguishing Owens Corning's asbestos liabilities and that the NSP would leave Owens Corning largely liability-free after 2001, the defendants told a very different -- and more accurate - story to a small, select group of Owens Corning investors who were positioned to control Owens Corning in the event of a bankruptcy. To the latter group, according to the complaint, defendants revealed the truth -- the NSP plan wasn't working, and would in fact capsize Owens Corning unless NSP-mandated payments were drastically curtailed.
As the complaint charges, the share price of Owens Corning stock was artificially inflated during the Class Period by defendants' positive public statements, which materially misled the public as to Owens Corning's true financial state and very financial viability. During late 1999 and early 2000, Owens Corning stock -- supported by defendants' statements -- traded at between $15 and $25 per share. In mid- and late 2000, as defendants slowly began to reveal to the public a more accurate assessment of Owens Corning and its asbestos liabilities, Owens Corning's share price deflated. On October 5, 2000, Owens Corning shares fell to $1 per share when Owens Corning declared bankruptcy and admitted that it had been overwhelmed by the asbestos liabilities that defendants claimed publicly to have solved.
The action seeks to recover losses suffered by investors who purchased Owens Corning stock during the class period at artificially inflated prices. Plaintiffs are represented by Kirby McInerney & Squire, LLP, a firm active in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than sixty days from the date of this notice, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Jeffrey H. Squire, Esq. Ori Braun KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: obraun@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.