Berger & Montague P.C. Announces Securities Class Action Lawsuit Against Zapata Corp.PHILADELPHIA--(BUSINESS WIRE)--Dec. 4, 1998--Berger & Montague P.C p.c. (post cibum), n a Latin phrase meaning “after meals”; the abbreviation may be used in prescription writing. . announced that it filed a securities fraud class action in October 1998 against Zapata Corp. (NYSE NYSE See: New York Stock Exchange :ZAP) and three of its top officers. The case was filed in the United States District Court for the Southern District of Texas The United States District Court for the Southern District of Texas is the Federal district court with jurisdiction over the southern part of Texas and is a part of the Fifth Circuit. The court's headquarters is in Houston, Texas and has six additional offices in the district. on behalf of all persons who purchased Zapata common stock during the Class Period, July 6, 1998 through Oct. 15, 1998. The complaint alleges that defendants falsely represented that Zapata was successfully implementing its highly publicized pub·li·cize tr.v. pub·li·cized, pub·li·ciz·ing, pub·li·ciz·es To give publicity to. Adj. 1. publicized - made known; especially made widely known publicised Internet strategy, including by agreeing to acquire 25 different Internet businesses, and by preparing to spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. its Internet business. Plaintiffs allege To state, recite, assert, or charge the existence of particular facts in a Pleading or an indictment; to make an allegation. allege v. that defendants' misleading, positive statements artificially inflated the price of Zapata stock, causing the price of Zapata shares to double overnight, from approximately $11 per share at the beginning of the Class Period to close at $21.50 on July 6, 1998. Plaintiffs further allege that Zapata's insiders took advantage of this increase in the price of Zapata stock, selling off more than $5.6 million of their Zapata holdings at peak prices. On Oct. 15, 1998, Zapata disclosed that it would not be pursuing a single one of the acquisitions it had so vigorously touted during the Class Period and revealed that it had abandoned its Internet strategy. Following these disclosures, Zapata closed at just $6.875 per share. Plaintiffs seek to recover damages suffered by Class members and are represented by the law firm of Berger & Montague P.C. Berger & Montague P.C. has over 50 attorneys, all of whom represent plaintiffs in 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 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 Boston Chicken, among others. For more information about Berger & Montague P.C., please visit our home page at http://home.bm.net. If you are a member of the Class described above, you may wish to join the action. You may move the court to serve as a lead plaintiff on or before Dec. 21, 1998. If you would like a copy of the Complaint, or if you would like to discuss this action, or have any questions concerning this notice or your rights with respect to this matter, you may contact: Sherrie R. Savett Esq., or Genna D. Kidd Esq., Berger & Montague P.C., 1622 Locust locust, in botany locust, in botany, any species of the genus Robinia, deciduous trees or shrubs of the family Leguminosae (pulse family) native to the United States and Mexico. Street, Philadelphia, Pa. 19103. |
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