Shepherd, Finkelman, Miller & Shah, LLC Files Securities Class Action Lawsuit on Behalf of Purchasers of Corporate Backed Trust
18 Juin 2004 - 11:00PM
PR Newswire (US)
Shepherd, Finkelman, Miller & Shah, LLC Files Securities Class
Action Lawsuit on Behalf of Purchasers of Corporate Backed Trust
Certificates, Verizon New York Debenture-Backed Series 2004-1
HARTFORD, Conn., June 18 /PRNewswire/ -- Shepherd, Finkelman,
Miller & Shah, LLC (http://www.classactioncounsel.com/; e-mail:
), announces that it has filed a class action lawsuit on behalf of
all purchasers of on behalf of all purchasers of Corporate Backed
Trust Certificates, Verizon New York Debenture-Backed Series 2004-1
("Certificates") between January 5, 2004 and May 11, 2004 inclusive
(the "Class Period"). The suit is brought against Lehman ABS Corp.
(NYSE: CCG), U.S. Bank Trust National Association, Corporate Backed
Trust Certificates Verizon New York Debenture Backed Series 2004-1
Trust (NYSE: JZG), Lehman Brothers, Inc. (LEH), RBC Dain Rauscher
and Banc of America Securities LLC, a subsidiary of Bank of America
Corp. (NYSE:BAC). The class action lawsuit is pending in the United
States District Court for the Southern District of New York (Civil
Action No. 04-04571). A copy of the Complaint filed in this action
can be obtained from the Court or you can call our offices toll
free at either 866/540-5505 or 877/891- 9880 to speak with an
attorney regarding this matter and we will send you a copy of the
Complaint. In addition, if you would like to discuss this action or
have any question regarding this notice or your rights, please
telephone or e-mail James E. Miller, Esquire (866/540-5505; ) or
James C. Shah, Esquire (877/891-9880; ). The Complaint alleges that
certain of the Defendants violated Sections 11 and 15 of the
Securities Act of 1933 and that other Defendants violated Section
12(a)(2) of the Securities Act of 1933. Specifically, the Complaint
alleges that in January 2004, pursuant to a trust agreement between
Lehman ABS Corp and U.S. Bank Trust, N.A., Lehman ABS Corp.
transferred over $150 million in the aggregate principal amount of
7 3/8% Debentures, Series B, which were due in 2032 (the
"Debentures") and which Debentures were issued by Verizon New York,
Inc., a subsidiary of Verizon Communications, Inc. (NYSE:VZ) to the
Corporate Backed Trust Certificates, Verizon New York
Debenture-Backed Series 2004-1 Trust (the "Trust"), which issued
the Certificates at issue. Over $50 million of additional
Debentures were issued later in January, 2004. Pursuant to
Prospectus Supplements dated in January 2004, over 8 million
Certificates were offered to the investing public at a price of $25
per Certificate. On May 7, 2004, Lehman ABS Corp. announced that,
on May 4, 2004, Verizon had filed a Form 15 with the SEC pursuant
to which it had elected to suspend its duty to file periodic
reports under certain sections of the Securities Exchange Act of
1934 and that, pursuant to the terms of the Trust, it would be
terminated. This announcement triggered an "event of default" which
automatically triggered the sale of the Debentures. On May 11,
2004, the Trustee announced that the sole assets of the Trust, over
$200 million in the principal amount of the Debentures would be
liquidated. On May 11, 2004, the last day of trading, the
Certificates closed at $22.00. Notice was sent to holders of the
Certificates informing them that they could receive liquidation
proceeds under the Trust Agreement or their pro rata portion of the
underlying securities of the Trust. Investors were informed that
this election must be made by May 24, 2004 at 3:00 p.m. if they
wanted to receive the securities. Otherwise, the Debentures would
be sold at the market price beginning on May 25, 2004 and the sales
would be completed by May 27, 2004. The Complaint alleges that the
Prospectus was materially misleading because it omitted to state
material information that defendants had an obligation to disclose.
Specifically, Verizon New York was 1 of 16 domestic operating
company owned by Verizon Communications that filed reports with the
SEC. While the Prospectus generally described Verizon New York's
failure to continue as an SEC filer as one of the potential events
of default, it failed to disclose that, as of February 2003,
Verizon Communications had already deregistered the public
indebtedness of six of its domestic operating telephone companies
(GTE Southwest Inc., Verizon Delaware Inc., Verizon Hawaii Inc.,
Verizon Northwest Inc., Verizon Washington DC Inc. and Verizon West
Virginia Inc.), and that those deregistrations were made pursuant
to a program established in early 2003 to change funding procedures
and reduce costs, which plan included possible deregistration of
domestic operating telephone companies with public indebtedness,
including Verizon New York. The Complaint asserts that this
information was exceptionally material to an investor's decision as
to whether to purchase the Certificates. The Complaint also alleges
that Defendants failed to conduct a reasonable investigation with
respect to the events of default detailed in the Prospectus. The
potential for triggering events of a default are key to the
valuation of any debentures. Had defendants conducted a reasonable
investigation, they would have discovered Verizon Communication's
plan to reduce its indebtedness, which included the deregistration
of some or all of its domestic operating companies. Plaintiff seeks
to recover damages on behalf of all those who purchased or
otherwise acquired Certificates during the Class Period (i.e.,
between January 5, 2004 and May 11, 2004 inclusive). If you
purchased or otherwise acquired Certificates during the Class
Period, and either lost money on the transaction or still hold the
securities, you may wish to join in the action to serve as lead
plaintiff. If you purchased Certificates during the Class Period,
you may, no later than August 2, 2004 request that the Court
appoint you as lead plaintiff. If you would like to discuss this
action or have any question regarding this notice or your rights,
please contact us at the telephone or electronic mail addresses
provided. Shepherd, Finkelman, Miller & Shah, LLC
(http://www.classactioncounsel.com/) is a national law firm that
represents investors, including institutions and individuals, as
well as consumers in class action and other complex litigation, and
maintains offices in Connecticut, Pennsylvania, New Jersey and
Florida. The firm's attorneys have appeared in matters on behalf of
our clients throughout the United States and been appointed lead
counsel in a number of class action and corporate governance
matters. Shepherd, Finkelman, Miller & Shah, LLC issues this
press release in compliance with the requirements of applicable
federal securities laws. DATASOURCE: Shepherd, Finkelman, Miller
& Shah, LLC CONTACT: James E. Miller of Shepherd, Finkelman,
Miller & Shah, LLC, +1-866-540-5505, Web site:
http://www.classactioncounsel.com/
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