Attention Shareholders of BankAmerica Corp.ATLANTA--(BUSINESS WIRE)--Nov. 19, 1998--Chitwood & Harley filed a securities class action on November 16, 1998 in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of on behalf of a class of persons who were common shareholders of NationsBank Corp. ("NationsBank") at the time that the August 4, 1998 Proxy/Prospectus concerning NationsBank's merger with BankAmerica Corp. ("BankAmerica" or the "Company") (NYSE NYSE See: New York Stock Exchange : BAC BAC abbr. blood alcohol concentration ) was voted upon and who were eligible to vote on the merger. The complaint alleges that BankAmerica and two of its directors violated Section 14(a) of the Securities Exchange Act of 1934, and Rule 14a-9 promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. thereunder. Specifically, the complaint alleges that as early as August 1998 (when the Proxy was distributed to shareholders), BankAmerica knew that it was incurring huge losses as a result of a significant unsecured loan Unsecured Loan A loan that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral. Notes: Generally, a borrower must have a high credit rating to receive an unsecured loan. to, and investment in, New York-based hedge fund D.E. Shaw & Co., but concealed the extent of the losses from investors. Indeed, no mention of these losses appeared in the Joint Proxy Prospectus. As a result of this material omission, NationsBank shareholders approved the merger on terms that they would not have approved had they been made aware of the significant loss exposure that BankAmerica faced as a result of D.E. Shaw. Shareholders were later shocked to learn that the losses from D.E. Shaw would cause a $372 million write-off and the Company's earnings to plunge 50% in its 1998 third quarter. Plaintiff is represented by Chitwood & Harley, an Atlanta law firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement mis·man·age tr.v. mis·man·aged, mis·man·ag·ing, mis·man·ag·es To manage badly or carelessly. mis·man  age·ment n. as well as other complex litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.When a person begins a civil lawsuit, the person enters into a process called litigation. . The firm has been appointed lead counsel in several major actions pending in both federal and state courts and has been instrumental in recovering millions of dollars on behalf of investors and shareholders. Any member of the proposed class who wishes to move the Court to serve as lead plaintiff of the Class must do so no later than December 15, 1998. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact: Corey D. Holzer, (888) 873-3999 (toll free) or by e-mail at mail@classlaw.com, CHITWOOD & HARLEY, 2900 Promenade II, 1230 Peachtree Street, N.E., Atlanta, Georgia 30309. Please visit our website at www.classlaw.com. |
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