Berger & Montague serves as lead counsel in a federal
securities class action brought against top officers and directors
of the now-bankrupt American Business Financial Services ("American
Business"). Plaintiffs charge that defendants made false
statements in the Registration Statements and Prospectuses that
American Business filed with the SEC during 2001-2003. These
Registration Statements and Prospectuses offered Notes or
subordinated debentures for sale to the public, promising high
interest rates. American Business stopped making principal
and interest payments on the Notes and filed for bankruptcy
protection on January 21, 2005.
About the case:
The Class consists of persons who bought Notes from
American Business during the period from January 18, 2002 to
January 20, 2005. As a result of defendants'
misrepresentation of American Business' financial condition and
results, the Class was induced to purchase worthless Notes.
They lost hundreds of millions of dollars.
The Court substantially denied defendants' motions to dismiss
the case and for judgment on the pleadings. The Court granted
plaintiffs' motion to certify the Class of persons who bought Notes
between January 18, 2002 and January 20, 2005.
Plaintiffs are now engaged in extensive discovery.