RADNOR, Pa., June 27 – LAWFUEL – The Law News Network — The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the Southern District of New York on behalf of all
securities purchasers of Lazard Ltd. (NYSE: LAZ) (“Lazard” or the “Company”)
between May 4, 2005 through May 12, 2005, inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this
notice or your rights or interests with respect to these matters, please
contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check,
Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
info@sbclasslaw.com.
The complaint charges Lazard, Bruce Wasserstein, Steven J. Golub, Charles
G. Ward III, William M. Lewis, Michael J. Castellano and Goldman Sachs & Co.,
with violations of Sections 11, 12(a) and 15 of the Securities Act of 1933 and
the Securities Exchange Act of 1934. More specifically, the Complaint alleges
that the Company failed to disclose and misrepresented the following material
adverse facts which were known to defendants or recklessly disregarded by
them: (1) that Goldman Sachs, in order to create the illusion of demand for
Lazard’s shares, arranged to sell millions of shares to hedge funds that
immediately flipped the shares back to Goldman, which already received a
substantial underwriting fee; (2) that a market for an IPO priced at $25 did
not exist; (3) that Lazard’s Registration Statement/Prospectus did not comply
with S-K Item 505;(4) that the IPO price was inflated so Bruce Wasserstein
could fund the acquisition of David-Weill’s stake in the Company solely with
the proceeds of the IPO; and (5) that the Company failed to disclose that
Gerardo Braggiotti, the Company’s deputy Chairman in Europe, a major
contributor of new business for the Company, was likely to leave and/or cause
turmoil within the organization as he opposed the IPO and the purchase of
David-Weill’s shares.
On May 9, 2005, Barron’s published an article entitled “King’s Ransom For
Lazard.” The article stated that there were “numerous negatives associated
with the Lazard deal.” According to author Andrew Bary (“Bary”), Lazard’s
shares were overvalued due to the Company’s negative book value and junk-grade
bond ratings from two major credit-rating agencies. Additionally, Bary
criticized Lazard for having a high cost structure and “a bevy of marginally
productive investment bankers.” By May 12, 2005, the price of Lazard dipped
below $22 per share, the price originally championed by bankers because of the
weak demand. On May 23, 2005, Goldman filed Form 4 with the SEC detailing
that between May 5, 2005, and May 10, 2005, Goldman purchased 3,007,580 of
Lazard’s shares for between $22.89 and $25 per share. On May 26, 2005, The
New York Post published an article entitled “IPO Backlash-Goldman Took $15M
Bath on Lazard Offering.” The article revealed that “investors dumped the
[Lazard] stock and forced Goldman to spend $15 million of its own cash to keep
Lazard’s stock from tanking, according to SEC filings.”
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin &
Barroway is a driving force behind corporate governance reform, and has
recovered in excess of a billion dollars on behalf of institutional and high
net worth individual investors. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online, please visit
http://www.sbclasslaw.com
If you are a member of the class described above, you may, not later than
August 15, 2005 move the Court to serve as lead plaintiff of the class, if you
so choose. A lead plaintiff is a representative party that acts on behalf of
other class members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member’s claim is
typical of the claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or more
class members may together serve as “lead plaintiff.” Your ability to share
in any recovery is not, however, affected by the decision whether or not to
serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Darren J. Check, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
Web Site: http://www.sbclasslaw.com
