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Schatz & Nobel, P.C. Announces Class Action Lawsuit Against Direct General Corp.
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31 January 2005, 6:34pm ET

HARTFORD, Conn., Jan. 31 /PRNewswire/ -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Middle District of Tennessee on behalf of all persons who purchased the publicly traded securities of Direct General Corp. (NasdaqNM: DRCT) ("Direct General") between August 11, 2003 and January 26, 2005 (the "Class Period").

The Complaint alleges that Direct General violated federal securities laws by issuing false or misleading public statements. Specifically, the Complaint alleges that Direct General improperly concealed the negative effect that changes in the Florida Personal Injury Protection ("PIP") system would have on its business and failed to properly reserve for such a contingency. Moreover, the Complaint alleges that certain corporate insiders sold $108 million worth of their personal holdings of Direct General stock before the substantial impact of the PIP changes was disclosed on January 26, 2005.

Mentioned Last Change
DRCT 18.75 1.09dollars or (5.49%)
If you are a member of the class, you may, no later than April 1, 2005, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement.

The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).

For more information about the case, its claims, and your rights, please contact Schatz & Nobel toll-free at [phone], or by e-mail at [e-mail] . To view a copy of the Complaint initiating the class action, which was not filed by Schatz & Nobel, or for more information about this case, class action cases in general, or Schatz & Nobel, please visit our website: http://www.snlaw.net .

CONTACT: Wayne T. Boulton
Tel.: [phone]
Website:

http://www.snlaw.net

e-mail:

[e-mail]

SOURCE Schatz & Nobel, P.C.
-0- 01/31/2005
/CONTACT: Wayne T. Boulton of Schatz & Nobel, P.C., [phone],

[e-mail]

/
/Web site:

http://www.snlaw.net/

(DRCT)

CO: Direct General Corp.; Schatz & Nobel, P.C.
ST: Connecticut
IN: FIN
SU: LAW

NJ-EO
-- NEM050 --
3299 01/31/2005 18:34 EST

http://www.prnewswire.com