UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
NICHOLAS ALLEN, RITA FRIEDMAN, DANIEL CIVIL ACTION NO.
FRISHWASSER, SCOTT PERKINS, JOHN E. 397CV02172 (RNC)
BATESON, CIARAN FLYNN, JOSEPH M.
JORDAN III and PAULETTE SATUR, individually
and on behalf of a class of others similarly situated,
Plaintiffs,
vs.
OLA JOHANSSON, BRIAN BOLAND,
HELEN WILLIAMS, GERARD HIGGINS,
MICHAEL COSTELLO, JAMES SADLIER,
KEITH WESTRICH, H. GEORGE WOLFE, JR.,
SUREMARK INVESTMENTS LTD.,
AUERBACH POLLAK & RICHARDSON, INC.,
ERNST & YOUNG CHARTERED
ACCOUNTANTS and ERNST & YOUNG, LLP,
Defendants. FEBRUARY 25, 1998
FIRST AMENDED CLASS ACTION COMPLAINT
Plaintiffs, Nicholas Allen, Rita Friedman, Daniel Frishwasser, Scott Perkins, John E.
Bateson, Ciaran Flynn, Joseph M. Jordan III and Paulette Satur ("Plaintiffs") on behalf of
themselves and all others similarly situated, by their attorneys, allege the following upon
information and belief for their Class Action Complaint (the "Complaint"), except for those
allegations which pertain to Plaintiffs and their attorneys, which allegations are based upon
personal knowledge. Plaintiffs' information and belief is based, inter alia, upon the investigation
conducted by their attorneys, including, among other things, a review and analysis of press
releases, public filings with the United States Securities and Exchange Commission by Phoenix
1
Shannon p.l.c. ("Phoenix" or the "Company"), certain documents prepared by the Defendants,
and a forensic accounting report based upon a review of Company documents and interviews
SNIPPETS:
FIRST AMENDED CLASS ACTION COMPLAINT
Plaintiffs, Nicholas Allen, Rita Friedman, Daniel Frishwasser, Scott Perkins, John E.
public filings with the United States Securities and Exchange Commission by Phoenix
and a forensic accounting report based upon a review of Company documents and interviews
Securities Act of 1933, 15 U.S.C. § 77v, Section 27 of the Securities
Venue is proper in this District pursuant to Section 22 of the Securities Act,
District, Defendant Auerbach, Pollak & Richardson, Inc.
In connection with the wrongs alleged herein,
the press releases and financial statements which are the subject of this Complaint.
Plaintiffs Allen, Friedman and Frishwasser purchased shares in the IPO, and
pursuant to the IPO Registration Statement and Prospectus described below,
Moreover, during the Class Period, as
Phoenix Shannon to perform certain agreed upon procedures and prepare a report
procedures related to the closing date statement of net assets of Ney; a specific scope audit
public accounting firm in Ireland which is a partner or otherwise controlled by Defendant
inflated during the Class Period due to the material misrepresentations and/or nondisclosures
REPRESENTATIONS THROUGHOUT THE CLASS PERIOD
Defendant Boland, improperly appropriated Company funds for his own personal purposes.
principles differed from US GAAP with respect to specific limited items set forth in Note 24
the financial statements (which items did not discuss or reference related party
repay certain personal loans made by third parties to Defendant Johansson.
1993, approximately $600,000 of the EDI receivable
was discharged in October 1993 as consideration for the purchase of EDI's dental alloy
The receivables had been distributed as a dividend in kind and were
statements from being misleading.
|
