Shareholder Files Suit Against National Auto Credit, Inc. (NAK) And Certain Officers and Directors Alleging Material Misstatements
25 February 1998
Shareholder Files Suit Against National Auto Credit, Inc. (NAK) And Certain Officers and Directors Alleging Material Misstatements
PHILADELPHIA, Feb. 25 -- Counsel for Class Plaintiffs,
Barrack, Rodos & Bacine, issued the following:
A class action has been commenced in the United States District Court for
the Northern District of Ohio on behalf of purchasers of National Auto Credit,
Inc. ("National Auto Credit") common stock from March 11, 1997
through January 27, 1998 (the "Class Period").
The complaint alleges that National Auto Credit and certain of its
officers and directors violated Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 by misrepresenting or failing to disclose material
information about National Auto Credit's results of operations and financial
condition.
Specifically, the complaint alleges that defendants issued false and
misleading press releases and financial statements for fiscal 1998 by
misrepresenting the adequacy of National Auto Credit's reserves for credit
losses. As a result of defendants, false and misleading statements and
material omissions, the price of National Auto Credit's stock was artificially
inflated during the Class Period, causing persons who purchased its common
stock during the Class Period to overpay for the stock. On January 20, 1998,
National Auto Credit announced that its outside auditor, Deloitte & Touche,
LLP, resigned because it "could no longer rely on management's
representations." Trading in the National Auto Credit's stock was suspended
between January 16 and January 26. When trading resumed on January 27, 1998,
the end of the Class Period, the stock price dropped 70% to $1.75 from its
previous close of $5-11/16 on January 16, 1998, and down from a Class Period
high of $11-3/8.
The plaintiff seeks to recover damages on behalf of all purchasers of
National Auto Credit stock during the Class Period and is represented by,
inter alia, the law firm of Barrack, Rodos & Bacine, which has extensive
experience in prosecuting investor class actions. Barrack, Rodos & Bacine has
prosecuted securities, antitrust and consumer class actions for over 20 years
from offices in Philadelphia, San Diego, New York, Boston and New Jersey, and
has been designated lead counsel by federal and state courts across the
country in large, complex cases. One Court has described the firm as
"recognized nationally to be a leading and skillful practitioner in the field
of complex class actions." For more information about Barrack, Rodos &
Bacine, please visit their website at http://www.barrack.com.
If you are a member of the Class described above, you may, no later than
April 3, 1998, move the Court to serve as lead plaintiff of the Class, if you
so choose. In order to serve as lead plaintiff, however, you must meet
certain legal requirements.
If you wish to discuss this action or have any questions concerning this
case or your rights or interests, please contact the Shareholder Relations
Manager at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market
Street, Philadelphia, PA 19103, at 800-417-7305 or 215-963-0600, fax number
888-417-7306 or 215-963-0838, or by e-mail at barrack@ix.netcom.com.
SOURCE Barrack, Rodos & Bacine