MURRAY, FRANK & SAILER LLP ANNOUNCES CLASS ACTION LAWSUIT ON BEHALF OF PURCHASERS OF CORPORATE BACKED TRUST CERTIFICATES VERIZON NEW YORK DEBENTURE BACKED SERIES 2004 1 - JZG
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New York, NY (PrimeZone) June 25, 2004
Murray, Frank & Sailer LLP announces that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased Corporate Backed Trust Certificates Verizon New York Debenture Backed Series 2004 1 (NYSE: JZG) (CUSIP: 21988K800) (the "Certificates") from their first offering on or about January 5, 2004 through and including May 11, 2004 pursuant to a prospectus dated November 8, 2002, as supplemented by prospectus supplements dated January 5, 2004 and January 20, 2004 (collectively, the "Prospectus").
The complaint charges defendants Lehman ABS Corp. ("LABS") and Lehman Brothers, Inc. with violations of the Securities Act of 1933. The complaint alleges that in January 2004, LABS created the Verizon New York Debenture-Backed Series 2004-1 Trust (the "Trust") by depositing over $200,000,000 of Verizon New York, Inc. 7-3/8% Debentures, Series B, due 2032 (the "Debentures") into the Trust. Pursuant to the Prospectus, the Trust issued and offered to the investing public, through LABS, 8,205,760 Certificates representing a proportionate undivided beneficial ownership interest in the Trust. The Certificates were sold for $25 per Certificate and paid a 6.20% interest rate. The Securities and Exchange Commission maintains rules governing sales of corporate debt backed trust certificates such as the Certificates that are the subject of this class action and only permits the sale of such certificates when the issuer of the underlying securities files certain periodic reports with the SEC. If the issuer of the underlying securities decides not to file those reports, any corporate backed trust relating to those securities must be liquidated.
On May 7, 2004, LABS announced that Verizon New York, Inc., the issuer of the Debentures underlying the Certificates, had elected to suspend the required reports and that the Trust must be terminated. This announcement triggered an event of default under the terms of the Trust, requiring the liquidation of the Trust assets. The price of the Certificates closed at $22 on May 11, 2004, the day that the Trustee announced that it would liquidate the Debentures and the last day of trading for the Certificates.
The Complaint alleges that the Prospectus was materially false and misleading because it omitted to state material information that the defendants had an obligation to disclose, including the material facts that Verizon (NYSE: VZ), the parent of Verizon New York, Inc., had established a plan in early 2003 to change its funding procedures, which plan included the possible deregistration of the public debt of its domestic operating telephone subsidiaries, and in fact, had previously elected to suspend filing periodic SEC reports for six of its domestic operating telephone subsidiaries in February 2003.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the Certificates from their first offering on or about January 5, 2004 through and including May 11, 2004, you may, no later than August 2, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
Fax: (212) 682-1892
Email: [email protected]