Class Action Suit Targets Owens Corning
BOSTON - Dwyer & Collora, LLP announces that a class action has been commenced in the United Stated District Court for the District of Massachusetts on behalf of all purchasers of Owens Corning Inc. ("Owens Corning" or the "Company") (NYSE:OWC) 7.5% Notes due May 1, 2005 and 7.7% Notes due May 1, 2008 (the "Debt Securities"), in an offering on or about April 30, 1998 (the "Offering).
The Complaint charges certain Owens Corning officers and directors, as well as the various underwriters who participated in the Offering, with violations of the Securities Act of 1933. The Complaint alleges that the Registration Statement for the Offering contained untrue and misleading statements of facts and omissions of material facts, including: (a) the representation that the Debt Securities would "rank equally with all other unsecured and unsubordinated indebtedness of the Company," (b) misleading representations concerning the Company's other unsecured indebtedness, (c) the failure to disclose that certain of the Company's other unsecured and unsubordinated indebtedness was guaranteed by one or more of the Company's subsidiaries, (d) the failure to disclose that the Company had a substantial debt to one of its subsidiaries, (e) the failure to disclose the existence of and the terms of certain promissory notes issued by the Company to one of its subsidiaries, and (f) the failure to disclose the existence and terms of an intellectual property licensing arrangement between the Company and one of its subsidiaries. As a result of these false and misleading statements and material omissions, the Complaint alleges that purchasers were misled about the true value of the securities and their seniority relative to other Owens Corning debt. On or about October 5, 2000, Owens Corning filed a voluntary petition for bankruptcy under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The named plaintiffs are John Hancock Life Insurance Company, John Hancock Variable Life Insurance Company and Investors Partner Life Insurance Company, each of whom purchased debt securities in connection with the Offering. The named plaintiffs are represented by Dwyer & Collora, LLP, a Boston-based law firm with expertise in class actions and securities litigation. If you are a member of the Class described above, you may, no later than 60 days from May 16, 2001, move the Court to serve as lead plaintiff of the Class. In order to serve as lead plaintiff, you must satisfy certain legal requirements.
Contact: Dwyer & Collora, LLP, Boston William H. Kettlewell, Esq. or David A. Bunis, Esq. or Daniel J. Cloherty, Esq. 617-371-1000