HARTFORD, Conn., May 17, 2007 (PRIME NEWSWIRE) -- The Connecticut law firm of Schatz Nobel Izard, P.C., along with New York-based law firm Sarraf Gentile LLP, are actively pursuing a class action against Optionable, Inc. ("Optionable" or the "Company") (OTCBB:OPBL) on behalf of all persons who purchased or otherwise acquired the common stock of Optionable between May 6, 2005 and May 10, 2007, inclusive, (the "Class Period"). The action is currently pending in the United States District Court for the Southern District of New York at docket number 07-CV-3845.
The Complaint alleges that Optionable and certain of its officers and directors violated Federal Securities laws by making misleading statements concerning the Company's business prospects and growth. Specifically, throughout the Class Period, Defendants failed to disclose the following facts: (i) Optionable was engaged in improper deals with its biggest client, the Bank of Montreal ("BMO"); (ii) Optionable's business was extremely dependent upon BMO; and (iii) Defendants were able to retain BMO only because they helped its star options trader mismark options, falsify the trading price at which BMO traded those options, and hide massive losses incurred by BMO as a result of those trades.
On April 27, 2007, BMO announced that it had lost between $300 to $400 million on trades executed through Optionable. In response to this disclosure, the Company's stock dropped 33%. Then, on May 8, 2007, BMO announced it was suspending all of its business relationships with Optionable. Finally, on May 10, 2007, it was disclosed that Deloitte & Touche LLP had conducted an audit of the trades that BMO had conducted with Optionable and found there had been "serious mismarking of the book of natural-gas options." On this news, the price of Optionable fell further to $0.84, representing a total drop of nearly 90%. During the Class Period, Optionable stock traded as high as $9.10 per share. Subsequent to the Class Period, on May 12, 2007, CEO Kevin Cassidy resigned.
If you are a member of the class, you may, no later than July 10, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
For more information about the case, its claims, and your rights, please contact Schatz Nobel Izard, P.C. toll-free at (800) 797-5499, or by e-mail: firm@snlaw.net or you may contact Sarraf Gentile LLP at (212) 868-3610, or by e-mail: joseph@sarrafgentile.com. To view a copy of the complaint filed by Schatz Nobel Izard, P.C. and Sarraf Gentile LLP or for more information about class action cases please visit: www.snilaw.com.