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JOSEPH B MALANIK v PATRICK J LEONARD Click to find out why . . .



Keywords & Phrases
CaseNo: JBMVPJL173799, CourtName: MA DC, Plaintiff: JOSEPH B MALANIK, State: MA Massachusetts, UniqueCaseRef: LCD>JBMVPJL173799, Cambridge, Common Stock, Revenue, Exchange Act, Price, Class Action, Accepted Accounting Principles, Rule Lob-5, Securities, Pursuant, Violation, Overstatement, Florence Malanik, Massachusetts, Defendants Leonard, Cambridge Biotech, States District Court, Misleading, Ortho Letter, Amended Form, Definitive Agreement, Net Income, United States, Accounts Receivable-trade, Material Facts, Fasb Statement, Nature, Shapiro, Malanik, Demand, Judge, Prlneipd, Government, Boston, Urmy, Haber, Grace , ContentID: 120253995

Case Documents
1 1993-11-19 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 130749
20 pages
PDF
2 1993-11-19 CIVIL COVER SHEET
[ see first page and extracted highlights below  ] ItemID: 130748
4 pages
PDF
Total Documents: 2 documents , 24 pages
Price: $ 24.95


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1 . COMPLAINT

EXTRACTED KEY WORDS
COMMON STOCK
DEFENDANTS
REVENUE
EXCHANGE ACT
PRICE
CLASS ACTION
ACCEPTED ACCOUNTING PRINCIPLES
RULE LOB-5
SECURITIES
PLAINTIFFS
PURSUANT
VIOLATION
MEMBERS
BUSINESS
OVERSTATEMENT
FLORENCE MALANIK
MASSACHUSETTS
DEFENDANTS LEONARD
CAMBRIDGE BIOTECH
STATES DISTRICT COURT
MISLEADING
ORTHO LETTER
AMENDED FORM
DEFINITIVE AGREEMENT
NET INCOME
UNITED STATES
ACCOUNTS RECEIVABLE-TRADE
MATERIAL FACTS
FASB STATEMENT
                                                                                                   
                                                                        a

UNITED  STATES  DISTRICT  COURT
DISTRICT  OF  MASSACHUSETTS
____--__--______________________________---------------------
                                                            X
JOSEPH  B.  .-MALANIK,       FLORENCE                        . .
  MALANlK,          and ROBERT  J.  VITKUS,  on              :
  behalf  of  themselves  and  all  others  similarly        :
  situated,                                                  *
                                                             .
                                       Plaintiffs,           : .
      -against-                                              * .
                                                             .                        -     -
PATRICK  J.  LEONARD,          PETER  P.
  HARTMAN,           CAMBRIDGE       BIOTECH
   CORP.,  and DELOITTE          &  TOUCHE,

                                       Defendants.           :
___----__-____----_11___________________-------*-------------
                                                            X

                               CLASS  ACTION              COMPLAINT

                                   NATURE        OF  THE  CASE

                1.  This  is  a Class  Action  brought  on  behalf  of  Joseph  B.  Malanik,

Florence  Malanik,  and  Robert  J.  Vitkus  and  all  other  persons  or  entities,  except  for

Defendants,  who  bought  Cambridge  Biotech  Corp.  ("Cambridge"  or  the  YCompany")

common  stock  (the  "Class")  during  the  period  November  5,  1992  through  October  29,

1993,  inclusive  (the  "Class  Period").

                2.  This  action,  based  on a violation  of  section  10(b)  of  the  Securities

Exchange  Act  and  SEC  Rule  lob-5  promulgated  thereunder,  arises  out  of  a course  of

business  and  conduct  pursuant  to  which  the price  of  Cambridge's  common  stock  wa

inflated  by  Cambridge's  overstatement  in  November  1992  of  its  net income  for  the

third  fiscal  quarter  1992  (ending  September  30,  1992)  and the  resulting  overstatement


of  its  full  year  1992  financial  results  in  March  1993,  all  in  violation  of  generally
SNIPPETS:
  • UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS
  • Defendants, who bought Cambridge Biotech Corp.
  • common stock during the period November 5, 1992 through October 29,
  • based on a violation of section 10of the Securities
  • business and conduct pursuant to which the price of Cambridge's common stock wa
  • third fiscal quarter 1992 and the resulting overstatement
  • intent only should a definitive agreement be signed.
  • The Company's misstatement of revenue for the third quarter 1992
  • Shortly after the overstatement of net income for the third quarter
  • Exchange Act of 1934, 15 U.S.C. $8 78j, 78t; Rule lob-5
  • promulgated pursuant to section 10by the Securities and Exchange Commission
  • Plaintiff Florence Malanik purchased 1,000 shares of Cambridge
  • Cambridge is a Delaware corporation with its headquarters in Worcester, Massachusetts.
  • to practice accounting in the State of Massachusetts with business offices in Boston,
  • Generally Accepted Accounting Principles and Generally Accepted Auditaudit report as to
  • and practices, misleading statements, and omissions particularized herein would adversely
  • Plaintiffs bring this action as a class action pursuant to Federal Rule
  • Excluded from the Class are Defendants, members of the immediate families of Defendants
  • and misrepresenting material facts or without performing- adequate due diligence
  • and Cambridge (the "Ortho Letter of Intent").
  • reported accounts receivable-trade of $8532,958 and $13,441,157 as of June 30,
  • The amended Form 10-K restates research and development revenue for the
  • (SAS No. 32; FASB Statement of Concepts No. 5);

  • 2 . CIVIL COVER SHEET

    EXTRACTED KEY WORDS
    SHAPIRO
    MALANIK
    COURT
    DEMAND
    JUDGE
    PRLNEIPD
    GOVERNMENT
    BOSTON
    URMY
    HABER
    GRACE
    THOMAS
    ALTORNEYS
    PATRICK
    JOSEPH
    DEFENDANTS
    PLALNTLFFS
    SHEET
    UNITED STATES DISTRICT
    B-L
    ATTORNEY
    SIGNATURE
    KEETON
    GEE MTRUCNONS
    VIII
    CNC
    WFES
    JURY DEMAND
    BNOER
    
                                                                                                       
    IL  COVER  SHEET                                                                @
    
    
    
     I  (a)  PLAlNTlFFS
                                          DEFENDANTS
             Joseph                         B.  Malanik,                                             
                                        Patrick                          J.  Leonard,                  
    Hartman
             and  Robert                                        J.  Vitkus,                            
                of                      Cambridge                                   Biotech            
             themselves                                          and  all                            
                                        Deloitte                             &  Touche
             situated
                                                                                                       
     (b)  COUNN                    OF  RESIDENCE                          OF  FIRST  LISTED            
                                         COUNTY         OF  RESIOENCE                     OF  FIRST 
                                                     (EXCEPT               IN  U.S.  PLAlNTlFP         
    
    
    (c)        AlTORNEYS                   (FIRM              NAME.        ADDRESS.                 
                                         AlTORNEYS               (IF  KNOWN)
    
             Thomas                         G.  Shapiro
             Shapiro                           Grace                             Haber                 
             75  State                               Street
             Boston,                           MA  02109                                        (617)  
    
     II.  BASIS                    OF  JURlSDICIlON                                                    
                                                                                                       
     CI-llZENSHlP                                                         OF  PRINCIPAL                
            rPULE*na UImsm
    
                                   (For  Owe&y          Cases           OnIy)                          
    *Cl  1  U.S  Govetnmant                                                        8  3  Fdsrsl        
               Plhltlff                                                                         (U.S. 
                                                                             PTF        DEF
                              P-F      DE=
    
                       clttm  at mra  state                                  a1         01             
     Plwu                    04       t4
    3  2  U.S.  Government                                                          0      4  Olvemity
                                                                                                       
    te
               Delelldsnt                                                                           
                       CM&n             of  Another          Slate           0  2       C  2           
           Plrca             c5       15
                                                                                                       
    
    SNIPPETS:
  • CIVIL COVER SHEET
  • I PLAlNTlFFS
  • DEFENDANTS Joseph
  • Malanik,
  • Patrick
  • AlTORNEYS
  • G. Shapiro Shapiro
  • Prlneipd Plwu
  • 04 t4 3 2 U.S. Government
  • NATURE
  • @bNOER
  • JURY DEMAND:
  • WfES
  • CNC
  • FEA Keeton
  • JUDGE
  • SIGNATURE
  • OF ATTORNEY
  • UNITED STATES DISTRICT
  • UNIm STATES DmCt COURT
  • -rYPEORPm ATMRNEY'S NAME Thomas G. Shapiro
  • Grace Haber & Urmy, 75 State Street, Boston, MA 02109 -ONE
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