Capstead Mortgage Eliminates Dividend: Shareholder Lawsuit Update.COLCHESTER, Conn.--(BUSINESS WIRE)--July 30, 1998--Capstead Mortgage Corp. (NYSE NYSE See: New York Stock Exchange :CMO CMO See: Collateralized mortgage obligation CMO See collateralized mortgage obligation (CMO). ) announced recently that it would be eliminating the payment of dividends. A class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax was filed on July 23, 1998 in the United States District Court for the Northern District of Texas The United States District Court for the Northern District of Texas (N.D. Tex.) is a United States district court. Its first judge, Andrew Phelps McCormick, was appointed to the court on April 10, 1879. The court convenes in Dallas, Texas. , Dallas Division against Capstead Mortgage Corp. and certain of its senior officers for various securities laws violations. This lawsuit, filed by Scott & Scott, LLC, is on behalf of purchasers of Capstead Mortgage common stock from April 17, 1997 to June 25, 1998. During this period, defendants materially inflated the price of Capstead's stock by misrepresenting the strength and diversification of its portfolio and by representing that it would generate strong earnings in almost any interest rate environment. In the second quarter of 1998, the company reported losses of about $255 million. Capstead stock, which traded as high as $27 13/16 during the class period fell to as low as $8 11/16 upon disclosure of these problems. Meanwhile, certain insiders exchanged Capstead securities for cash, resulting in more than $10.6 million in proceeds to themselves. The stock has continued its downward trend. Scott & Scott, LLC, also filed a complaint against Premiere Technologies (NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). :PTEK PTEK Parents and Teachers of Explosive Kids ) on July 21, 1998 in the United States District Court for the Northern District of Georgia The U.S. District Court for the Northern District of Georgia serves the residents of forty-six counties. These are divided up into four districts. The Atlanta district includes: Cherokee, Clayton, Cobb, Internet Coffe Phone, Douglas, Fulton, Gwinnett, Henry, Newton, and , Atlanta Division. The complaint alleges that defendants violated federal securities laws by issuing materially false and misleading press releases, public filings and/or statements during the class period (April 2, 1997 to June 10, 1998). The law firm also filed a complaint against Smartalk Teleservices Inc. (NASD:SMTK) in the Superior Court of the State of California alleging securities laws violations. This complaint, on behalf of purchasers of the stock from Aug. 14, 1997 to May 13, 1998, was filed on July 23, 1998. Scott & Scott, LLC, is a Connecticut based law firm engaged in the representation of both public and private companies in 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. and transactional work. The firm also has a boutique practice in antitrust, securities and other complex class-action litigation. Scott & Scott, LLC, prides itself on its ongoing dedication to client satisfaction. The firm has a nationwide practice and has offices in Connecticut and Pennsylvania. If you would like to discuss the matters above or receive a copy of either complaint, and you purchased the stock during the class period, please contact: Neil Rothstein, Esq. of Scott & Scott, LLC at 800/404-7770 or 215/875-5712. Or please e-mail at: NROTHSTEIN@SCOTT-SCOTT.COM.
CONTACT: Scott & Scott
Neil Rothstein, 800/404-7770 or 215/875-5712
e-mail: NROTHSTEIN@SCOTT-SCOTT.COM.
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