NIGHT
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
LI_I___X-r_r_--__-__-----____Lf-l-rr---------_l_n-I_II
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NATHAN S. DAVIS, DONALD J. MM-TAIL II, :
ancl JOHN DONLEY, individually and on :
behalf of all others similarly situated,
Plaintiffs, : MAGISTRATE JULXX
BROWN
- against - t
AMEXDED
PRECISION RESPQNSE CORWRATION, : CLASS ACTION
MARK J. GORI>ON, PAlJL M. O'HARA, : COMPLAINT
DAVID L. EPSTEIN, JAMES F. MURRAY, : FOR VIOLATIONS
RlCHARD b. MONDRE, BERNARD I. : OF Fl3DERAL
KOSAR, JR., CHRISTtAN MUSTAD, NEIL : SECuRIT1m LAW
A. NATKOW, GOLDMAN SACHS & CO., :
DAIN BOSWORTH INC., MERRILL LYNCH :
& CO.. and FURMAN SELZ LLC,
Plaintiffs
Defendants. : Trial by Jury
Plaintiffs, by their attomys, for their Amended Class Action Complaint (the
"Complaint"), allege the following upon personal knowledge as to themselves and to their
acts, and upon information and belief based uplo the investigation &plaintiffs attorneys as to
ulher mrztlers. The investigation of counsel includes the review aqd analy.6 of public
publicly-filed documents of Precision Response Corporation ("Precision Respoase" or the
"Campany"), press releases, news articles, and interviews with former employees.
NATURE OF THE ACTION
1. This is $ securities class action on behalf of purchasers of common
Precision Response on or traceable to a secondary public offering (the "Offering") by
Response of 4,740,ooO shares of common stock, which Offering was made pursuant tO a
SNIPPETS:
Plaintiffs, by their attomys, for their Amended Class Action Complaint (the
and upon information and belief based uplo the investigation &plaintiffs attorneys as to all
publicly-filed documents of Precision Response Corporation ("Precision Respoase" or the
"Campany"), press releases, news articles, and interviews with former employees.
This is $ securities class action on behalf of purchasers of common stuck of
Precision Response on or traceable to a secondary public offering by Precision
Response of 4,740,ooO shares of common stock, which Offering was made pursuant tO a
2, The Regisuarion Statemeni, of which ihe Pruspwus was a part, pursuant to
statements that were made noI false and misleading, in violation of Section 11 of the
not in&de even preliminary fiscal year or fourth quarter I997 financial results in the
the material downturn in the Company's growth rate would have
That cost cutting program and price renegotiation is virtually certain to have caused
This action arises under Sections 1 I and 15 of the Securities Act of 1933 (the
defendants, directly and indirectly.
Plaintiff Nathan S. Davis purchased 1QO shares of Precision Response sdc
Defendant Mark I. Gordon was, at all times relevant hereto, Chairman of the
the Offering and an "underwriter" of the Offering within the meaning of the Securities Act.
Defendant Furman Selz is a full service broker-dealer engaged in securities brokerage,
Because 4,740,OCKi shares were issued pursuant to the Offering, the members
For the first nine months of 1996, approximately 75.5 % of the Company's teleservicing
$9,766,0oo, an apcrating margin of nearly 5.9'fb, and pro forma net inwme of $269,ooO, or S.02
Pro forma net income increased
Operating margin increased naly 42.9% from the previous quarter.
service and marketing operations and increased sales by the
79- This claim is assated against the Individual Defendants each of whom was m
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