Heller, Horowitz &Feit, P.C. Announces Shareholder Class Action Filed Involving First National Bank of Keystone.Business/Legal Editors CHARLESTON, W.Va.--(BUSINESS WIRE)--Jan. 24, 2000 The following was announced by Heller, Horowitz &Feit, P.C. today: A class action entitled Debra Gariety, et al. v. Grant Thornton, LLP LLP - Lower Layer Protocol , et. al., Civ. Action No. 2:99-0992 (S.D.W. Va.), was filed on November 8, 1999 on behalf of shareholders of First National Bank of Keystone (&uot;Keystone Bank&uot;) 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 West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. . The class action relates to claims arising from the failed Keystone Bank, which was taken over by the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. on September 1, 1999, due to alleged massive fraud whereby one-half of Keystone Bank's purported $1.1 billion in assets were non-existent or greatly overvalued Overvalued A stock whose current price is not justified by the earnings outlook or price/earnings (P/E) ratio and thus, expected to drop in price. Overvaluation may result from an emotional buying spurt, which inflates the market price of the stock or from a deterioration in a . The class action has named as defendants Keystone's outside auditors (Grant Thornton, LLP, and Herman &Cormany), officers and directors (Michael Graham, Billy Jean Cherry, Terry Lee Church, Estate of J. Knox McConnell, Louis J. Pais, Michael F. Gibson, Andrew L. Rago, Julian G. Budnick, Gary Ellis), certain brokers (Diversified Capital Markets, Michael Patterson, Inc., Michael Patterson, and E. E. Powell &Co., Inc.) J& Construction Company and Hermie Church, and John Doe John Doe formerly, any plaintiff; now just anybody. [Am. Pop. Usage: Brewer Dictionary, 329] See : Everyman sellers of Keystone stock. The Complaint asserted the following claims: (i) violation of Section 12(1) of the Securities Act of 1933; (ii) violation of Section 20A of the Exchange Act of 1934; (iii) violation of Section 10(b) of the Securities Exchange Act of 1934; (iv) violation of Sections 20(a) of the Exchange Act of 1934 and 15 of the securities Act of 1934; (v) violation of West Virginia Uniform Securities Act, W. Va. Code section 32-4-410(a)(2), Ohio Rev. Code section 1707 and/or Pennsylvania Securities Act of 1972, 70 P.S. section 1-501; (vi) violation of West Virginia Uniform Securities Act, W. Va. Code section 32-4-410(b); (vii) violation of West Virginia Securities Act, W. Va. Code sections 32-3-301 and 32-4-410(a)(1), Ohio Revised Code The Ohio Revised Code contains all acts passed by the Ohio General Assembly and signed by the governor. The Ohio Revised Code replaced the Ohio General Code in 1953. section 1707, and/or Pennsylvania Securities Act of 1972, 70 P.S. sections 1-201 and 1-502; (viii) breach of fiduciary duty; (ix) fraud; (x) constructive fraud constructive fraud n. when the circumstances show that someone's actions gives him/her an unfair advantage over another by unfair means (lying or not telling a buyer about defects in a product, for example), the court may decide from the methods used and the result ; (xi) negligent misrepresentation misrepresentation In law, any false or misleading expression of fact, usually with the intent to deceive or defraud. It most commonly occurs in insurance and real-estate contracts. False advertising may also constitute misrepresentation. , and (xii) civil conspiracy. The class action was initially filed on behalf of Keystone Bank shareholders who purchased Keystone stock between on or about June 1, 1999 and September 1, 1999. The Class Period is a period beginning on or about January 1, 1995 and continuing until September 1, 1999. On January 10, 2000, plaintiffs filed a motion for leave to add named plaintiffs and defendants, extend the trading period covered to on or about April 19, 1999, drop claims regarding the sale of unregistered securities, and amplify the allegations in the Complaint. No later than sixty (60) days after the date in which this Notice is published, any member of the proposed class may move the Court to serve as lead Plaintiff of the proposed Class. |
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