Class Action Suit Filed Against Reliance Acceptance Group, Inc. - Formerly Known as Cole Taylor Financial Group, Inc.- Its Officers, Directors, Auditors and Financial Advisors.CHICAGO--(BUSINESS WIRE)--March 19, 1998-- Charges Include Proxy Violations and Securities Fraud A class action has been commenced in the United States District Court for the Western District of Texas The United States District Court For the Western District Of Texas (W.D.Tex) is the Federal district court whose jurisdiction consists of the counties in the western part of the state of Texas. This district covers over 92,000 square miles and seven divisions. on behalf of both purchasers of Reliance Acceptance Group, Inc. ("Reliance") common stock during the period March 14, 1995 to November 14, 1997 (the "Class Period") as well as persons whose ownership of shares (regardless of when acquired) entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: them to vote at the Company's November 15, 1996 shareholder meeting where shareholders approved a split-off transferring the Company's most valuable assets to insiders. Reliance was previously known as Cole Taylor For the Battlestar Galactica character, see Cole "Stinger" Taylor Cole Taylor was a gay pornographic actor who primarily worked in the 1980s. He made his debut in the Nova Studios production Heroes (1984). Financial Group, Inc. The complaint charges that Reliance, the Taylor family, certain other insiders, its auditors and its financial advisors inflated the assets and income of the Company's subprime auto loan business by grossly understating its bad loan reserve thereby defrauding purchasers of Reliance stock during the Class Period in violation of the Securities Exchange Act of 1934 and state law. This enabled the Taylor family to induce shareholders to approve a 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. to the Taylors, Reliance's dominant shareholders, of the profitable Cole Taylor Bank subsidiary while leaving the public stockholders with Reliance's Cole Taylor Finance Co. subsidiary. At the time of the shareholder vote defendants represented the finance subsidiary as a rapidly growing and profitable subprime auto loan business when, in fact, it was technically insolvent INSOLVENT. This word has several meanings. It signifies a person whose estate is not sufficient to pay his debts. Civ. Code of Louisiana, art. 1980.. A person is also said to be insolvent, who is under a present inability to answer, in the ordinary course of business, the responsibility . Only a few days after the February 12, 1997 completion of the spin-off, defendants began to reveal Reliance's problems. In the following nine months, defendants were forced to announce $110 million in charges against income to add to Reliance's loan loss reserves. In light of these belated be·lat·ed adj. Having been delayed; done or sent too late: a belated birthday card. [be- + lated. disclosures, Reliance recently filed for bankruptcy protection. Its stock price plummeted to less than $0.25 per share from its Class Period high of $31.25. Plaintiff is represented by Kahn & Associates, Ltd., a Chicago-area firm with substantial expertise in prosecuting investor class actions involving financial fraud. Kahn & Associates has been actively engaged in commercial 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. in federal and state courts throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. for more than 20 years. Most recently, Kahn & Associates was appointed lead counsel by the United States District Court for the Northern District of Illinois The United States District Court for the Northern District of Illinois is the Federal district court whose jurisdiction comprises the following counties, divided into two divisions: for a class of investors with similar claims against the officers, directors and accountants of another subprime auto lender, First Merchants Acceptance Corporation. If you wish to discuss this action or have any questions concerning this notice, please contact plaintiff's counsel, David B. Kahn or Mark E. King of Kahn & Associates at 847/501-5083 or via e-mail at dbklaw@flash.net. CONTACT: David B. Kahn & Associates David B. Kahn, 847/501-5083 Mark E. King, 847/501-5083 dbklaw@flash.net |
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