Class Action Suit Against Livent
NEW YORK--(BUSINESS WIRE)--Aug. 12, 1998--On August 12, 1998, a class action was commenced on behalf of all purchasers of the common stock of Livent Inc. (NASDAQ:LVNTF; TSE:LIV) against Livent and certain of its officers and directors alleging violations of the Securities Exchange Act of 1934. The complaint alleges, among other things, that the company artificially inflated the price of its stock by misrepresenting its financial condition, causing the Company's investors to suffer significant financial losses. The proposed class includes Canadian investors in Livent stock. Plaintiffs are represented by the law firm of Shalov Stone & Bonner, which has extensive experience in the prosecution of class actions on behalf of investors. For more information about the firm, please visit our website at: www.lawssb.com
If you would like to participate in this action or would like additional information about the lawsuit, please contact Shalov Stone & Bonner (Ralph M. Stone), 70 West 36th Street, Suite 1404, New York, New York 10018, telephone: 212-268-2727, email: tenbfive@aol.com.
CONTACT: Shalov Stone & Bonner, New York
Ralph M. Stone, 212-268-2727
PHILADELPHIA, Aug. 20 /PRNewswire/ -- Berger & Montague, P.C. announced that a class action lawsuit for violations of the federal securities laws was filed on Aug. 12 in the U.S. District Court of the Southern District of New York against Livent, Inc. (Nasdaq: LVNTF) and Garth Drabinsky and Myron Gottlieb, who had been the Company's principal officers, on behalf of all persons who purchased Livent common stock between March 5, 1996, and August 7, 1998.
The Complaint alleges that, as per the Capital Markets Report dated Aug. 10, 1998, the company announced that it had discovered "serious irregularities in the Company's financial records" relating to "improper recognition of revenue and the failure to record, or the improper deferral and capitalization of expenses" which "appear to involve millions of dollars." According to the Company, as reported by the Associated Press, these accounting issues were likely to require restatement of all of the Company's financial results since 1995, and could "give rise to an event of default" under some loan agreements.
As reported by The Globe and Mail, after an emergency meeting of the Company's Board of Directors on August 9, 1998, the Company suspended defendants Drabinsky and Gottlieb from their positions. The article reported that both of them, together with their personal secretaries, were formally escorted from their offices at the Company. The executive floor was then sealed off, with security guards posted. Discussing these announcements, The Globe and Mail reported that a source close to Livent termed the company's financial debacle "a blot on the Canadian entertainment industry" while another stated that "Livent's finances were a house of cards." The complaint further alleges that, as a result of defendants' violations, the market price of Livent stock during the Class Period was as high as $13.625 per share. Trading in Livent stock was halted at the end of the Class Period.
The action was filed by a purchaser of Livent stock who alleges that the market price of the Company's stock was artificially inflated during the Class Period as a result of these misrepresentations and omissions. Plaintiff seeks to recover damages suffered by investors who bought Livent stock between March 5, 1996, and August 7, 1998, and is represented by the law firms of Berger & Montague, P.C., and Wolf Popper, LLP.
If you purchased Livent (Nasdaq: LVNTF) common stock during the class period March 5, 1996, through August 7, 1998, inclusive, you may wish to join the action. You may move the court to serve as a lead plaintiff on or before 60 days from August 11, 1998. If you would like to discuss this action or if you have any questions concerning this notice or your rights with respect to this matter, you may contact: Sherrie R. Savett, Esq.; Carole A. Broderick, Esq., or Arthur Stock, Esq., Berger & Montague, P.C., 1622 Locust Street, Philadelphia, PA 19103. For more information about Berger & Montague, P.C., visit its home page at http://home.bm.net.
The law firm of Berger & Montague, P.C., has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience in representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries in excess of two billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Waste Management, Inc., Sunbeam Corp., and numerous other companies.
If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may call or write to:
Sherrie R. Savett, Esq.
Carole A. Broderick, Esq.
Arthur Stock, Esq.
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
888-891-2289 or 215-875-3000
Fax: 215-875-5715
E-mail: InvestorProtect@bm.net
