UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF INDIANA
South Bend Division sgApR N
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HyMAN STEINMETZ, Individually and : Civil Action No. ~~~
On Behalf of All Others Similarly : 3:98CVO245RM
Situated, . .
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Plaintiff, . l
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-agaimt- I . . .
NATIONAL STEEL CORPORATION, . .
OSAMU SAWARAGI, CARL M. APEL, :
and NKK U.S.A, CORPORATION, : PLAINTIFFDEMANDSA
l TRIAL BYhJRY
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Defendants. :
FIRST AMENDED CLASS ACTION COMPLAINT
FOR VIOLATIONS OF FEDERAL SECTJRITIES LAW
Plaintiff, by his attorneys, for his Class Action complaint, alleges:
NATURE OF Tm CASE
1. This is a securities class action brought on behalf of plaintiff
persons or entities, except for defendants or their privies, who bought National Steel
Corporation ("National Steel" or the "Company") common stock during the period May
14, 1995 through October 30, 1997, inclusive (the "Class Period").
2. Before and during the Class Period, defendants manipulated the
Company's reported earnings by issuing a series of materially false and misleading
statements about the Company's annual financial results for 1992 through 1996, its
quarterly financial results for each quarter of 1996, and its quarterly financial results
SNIPPETS:
FIRST AMENDED CLASS ACTION COMPLAINT
Plaintiff, by his attorneys, for his Class Action complaint, alleges:
This is a securities class action brought on behalf of plaintiff and ail other
persons or entities, except for defendants or their privies, who bought National Steel
Corporation ("National Steel" or the "Company") common stock during the period May
Company's reported earnings by issuing a series of materially false and misleading
reported in National Steel's press releases and in its public filings with the Securities and
Throughout the Class Period,
Steel's success to irs "sustained profitability," as the Company reported in its 1994, 1995,
These improper accounting practices caused the Company's
Steel announced that the Audit Committee of the Company's Board of Directors,
Steel's earnings management and excess reserves and the fact that the Company's
improper accounting practices were in direct violation of GAAP.
manipulate future earnings, the price of the Company's stock immediately declined.
plaintiff and the other members of the Class purchased National Steel common
Venue is proper in this District under Section 27 of the Exchange Act,
Corporation ("NKK (USA)"), with its principal
Defendant Sawaragi was elected Chairman effective
shareholders during the Class Period omitted and misrepresented material facts
Class Period was artificially inflated due to the nondisclosures and misrepresentations
defendants managed the Company's earnings by understating net income through
prior SEC filings to reflect the following restatements.
Accounting Principals Board Opinion No. 20, 7 13, provides that financial
the Class Period, and the overstatement of reserves for the entire Class Period, plaintiff
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