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Wednesday, January 16, 2008

Pzena is Hit With Another IPO Suit

Reported by Erin Kello

New York City-based Pzena Asset Management has been slapped with yet another lawsuit relating to its October IPO. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed suit against Pzena in the Southern District of New York for allegations that the company and its founder, Richard Pzena, issued numerous materially false and misleading statements which caused Pzena’s securities to trade at artificially inflated prices. The lawsuit is seeking class action status.

Baltimore-based Brower Priven (see Pzena Slapped with Suit Post-IPO," November 30, 2007) and New York-based Abraham, Fruchter & Twersky (see "Fund Outflows Trigger a Lawsuit for Pzena," November 26, 2007) also have pending suits involving the company's IPO.

Brower Priven's complaint alleges that Pzena and its executives issued materially false and misleading statements that artificially inflated the market price of the firm's securities. Abraham, Fruchter & Twersky's complaint alleges that Pzena did not disclose net redemptions in the $8-billion John Hancock Classic Value Fund, which is subadvised by Pzena, at the time of its IPO.

Company Press Release

The law firm Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit in the United States District Court for the Southern District of New York on behalf of its client and on behalf of other similarly situated purchasers of Pzena Investment Management, Inc. (“Pzena” or the “Company”) (NYSE:PZN) common stock pursuant and/or traceable to the Company’s October 24, 2007 Initial Public Offering (the “IPO”). The complaint charges Pzena and Richard C. Pzena with violations of the Securities Act of 1933 (the “Securities Act”).

Specifically, the complaint alleges that, in connection with the IPO, defendants issued numerous materially false and misleading statements which caused Pzena’s securities to trade at artificially inflated prices. As alleged in the complaint, the Company’s registration statement for the IPO failed to disclose a pattern of net redemptions in the largest mutual fund advised by Pzena, which existed at the time of the IPO. The subsequent disclosure of these facts three weeks later resulted in the price of the Company’s common stock declining, causing Plaintiff and the other members of the Class to suffer damages.

If you are a member of the class, you may, no later than January 22, 2007, request that the Court appoint you as Lead Plaintiff of the class. Any member of the purported class may move the Court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia, Chicago, San Francisco, and London, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm’s website at www.cmht.com.

The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.

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