IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
_______________________________________
)
F. KENNETH SHOCKLEY, M.D., DAVID )
SHOCKLEY, JOHN M. AND SANDRA )
M. MORRASH AND PATRICIA )
CLEMENT, Individually and on behalf of all ) CIVIL ACTION NO. [99-CV-00371]
others similarly situated, )
) CLASS ACTION COMPLAINT
Plaintiff, ) FOR VIOLATIONS OF FEDERAL
) SECURITIES LAWS
vs. ) [filed Jun. 11, 1999]
)
ADAMS GOLF, INC., B.H. (BARNEY) )
ADAMS, RICHARD H. MURTLAND, DARL )
P. HATFIELD, PAUL F. BROWN, JR., )
ROLAND E. CASATI, FINIS F. CONNER, )
STEPHEN R. PATCHIN, LEHMAN )
BROTHERS HOLDINGS INC., BANC OF )
AMERICA SECURITIES LLC AND FERRIS, ) JURY TRIAL DEMANDED
BAKER WATTS, INCORPORATED, )
)
Defendants. )
_______________________________________ )
NATURE OF THE ACTION
Plaintiffs, for their Class Action Complaint, allege as follows:
1. Plaintiffs base the allegations of this Complaint on the investigation of their counsel.
investigation included, inter alia, review and analysis of the public filings of defendant Adams
Golf, Inc. ("Adams Golf" or the "Company") with the Securities and Exchange Commission (the
"SEC"); Adams Golf's public statements; media and securities analysts' reports, and information
provided by sources knowledgeable with respect to the golf equipment industry.
2. This is a federal securities law class action filed individually and on behalf of all persons
"Class") who purchased shares of Adams Golf in Adam Golf's initial public offering (the "IPO").
Defendants made the IPO pursuant to a registration statement (the "Registration Statement"),
which became effective July 9, 1998, and the prospectus (the "Prospectus") included as an
exhibit to the Registration Statement. Both the Registration Statement and the Prospectus were
materially misleading and omitted material facts.
3. The claims asserted herein arise under §§11, 12(a)(2) and 15 of the Securities Act of 1933, as
amended (the "Securities Act"), 15 U.S.C. §§77k, 77l(a)(2) and 77o.
SNIPPETS:
AMERICA SECURITIES LLC AND FERRIS,) JURY TRIAL DEMANDED
Plaintiffs base the allegations of this Complaint on the investigation of their counsel.
Counsel's investigation included, inter alia, review and analysis of the public filings of
This is a federal securities law class action filed individually and on behalf of all persons
Defendants made the IPO pursuant to a registration statement, which became effective July 9,
Both the Registration Statement and the Prospectus were materially misleading and omitted
This Court has jurisdiction pursuant to §22 of the Securities Act,
According to press releases issued by the Company, Adams Golf is the leading seller of
By reason of their management positions and/or membership on the Company's Board of
Each of the Underwriter Defendants participated in any due diligence meetings, and in any
Plaintiffs bring this action pursuant to Federal Rule of Civil Procedure 23and an behalf of
While the exact number of Class members is unknown at the present time, in the IPO the
Plaintiffs have retained counsel who are experienced and competent in both class action and
Notice can be provided to such record owners by first class mail, using techniques and a form
In December 1996, the Company extended the Tight Lies line to include the Tight Lies Strong
Sales of the Tight Lies line of products increased significantly subsequent to the second
in the Registration Statement and the Prospectus defendants failed to disclose the material
Second, the Registration Statement and the Prospectus failed to disclose the material risk,
Gray market distribution is the distribution, unauthorized by the Company, of the Company's
To preserve the integrity of its image and reputation, the Company limits its distribution to
The Registration Statement and the Prospectus Failed to Disclose the Material Fact that, Even
Plaintiffs repeat and reallege each and every allegation contained above.
Plaintiff will not accept any payment for serving as a representative party on behalf of the
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