FRAUD LAWSUIT FILED FOR PURCHASERS OF PRISON REALTY TRUST, INC. STOCK
LITTLE ROCK, Ark., Dec 30, 1999 /PRNewswire via COMTEX/ -- The Law
Offices of Steven E. Cauley announced today that a securities fraud lawsuit has been filed in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Prison Realty
Trust, Inc. ("Prison Realty" or the "Company") (NYSE: PZN) common stock during the period between June 23, 1999 and December 27, 1999, inclusive (the "Class Period").
The complaint charges Prison Realty and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that, throughout the Class Period, the defendants falsely represented that Prison Realty would be able to pay the
approximately $1.50 per share special dividend necessary for the Company to maintain its status as a Real Estate Investment Trust. As a result, the complaint alleges that Prison Realty stock was artificially
inflated throughout the Class Period. However, on December 27, 1999, the Company announced that it would not pay the one-time special dividend, that it would suspend payment of its regular dividends, and that Doctor Crants and Robert Crants would no longer manage the Company. Upon this announcement, the price of Prison Realty shares collapsed in value, falling far below the prices at which it traded during the Class Period.
The Law Offices of Steven E. Cauley have substantial experience in prosecuting class action lawsuits on behalf of investors, and recently obtained a $25 million settlement for certain purchasers of Medpartners securities. If you wish to serve as one of the lead plaintiffs in this lawsuit you must file a motion with the court within 60 days of December 30, 1999. If you have any questions regarding this lawsuit or how you may be able to recover for the losses you have incurred, please
E-mail or call one of the attorneys listed below:
Steven E. Cauley Scott E. Poynter Gina M. Cothern 2200 N. Rodney Parham Road Suite 218, Cypress Plaza Little Rock, AR 72212 E-mail: CauleyPA@aol.com 1-888-551-9944 - toll free
i've been in several stocks like pzn and the lawyers think everyone has been screwed and in the end the lawyer want to settle for legal fees and they are the only ones that get anything out of the suit...the stock price will recover after the tax selling and the analysis understand the stock going forward;then everybody forgets there is even a lawsuit and there is no longer anyone to join in the suit...seen it happen 10-15 times and nothing ever happens...i've got large ,large loss and knew when i bought the stock ($7.25 avg.) that the dividend was not safe....in a deal like this , things change hourly while the deal is being done...you know the the group doesn't breakeven until $6.50/share and these groups look for larger than a 100% return..
This is the 2nd class action. The group gets an 18% dividend if the stock doesn't go up, and if it does they get the option to buy at 6.50 (can't remember the actual number). OPCO and PZN are 2 different companies. Of all the companies why was it OPCO the one that caused the problems in the first place that we have to merge with. I would rather merge with one of the other private prison companies or liquidate. Preferably we would get rid of all involvement with OPCO and go alone.
With or without Blackstone, et. al. the stock probably will go up IMHO. However, it would go up faster with a CEO that is pro stock holder, rather the a CEO pro OPCO.
The debt and cash flow according to the balance sheet, is not too bad. However, things may be worse that I think and in this case Blackstone, et. al. may be the savior and not the type I think they are.
I look back at AFCI last year at $5/share with more than 20 law suits!!!Now it is around $44/share! And where all the law suits go??? Same thing will happen to PZN. If you think the company will not die which I know for sure, the chance to win is huge. PZN will be >30/share next year and 5/share is so cheap to by pass to own more... Happy New Year :-)