Zeev's Turnips Patch-No Politics (ZEEV)

[AKvetch]

OMG. Poor Mooney, looks like the lawyers want to sue because his margin call depressed the stock price. Mooney exercises options with borrowed money, loses his stock because of the call, and Weiss sues too. Wonder if the CEO could be the "lead plaintiff" <g>.

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SAN DIEGO--(BUSINESS WIRE)--Nov. 1, 2002--Milberg Weiss (http://www.milberg.com/cases/omgroup/) today announced that a class action has been commenced in the United States District Court for the Northern District of Ohio on behalf of purchasers of OM Group Inc. ("OM Group") OMG publicly traded securities during the period between July 30, 2002 and Oct. 30, 2002 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at [e-mail]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.milberg.com/cases/omgroup/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges OM Group and certain of its officers and directors with violations of the Securities Exchange Act of 1934. OM Group produces and markets metal-based speciality chemicals and related materials. Certain of the Company's products are value-added and some are commodity. The complaint alleges that during the Class Period, defendants made false statements about the Company's business and prospects. After reporting somewhat disappointing 2ndQ 02 results, defendants told investors that its business was strong and all the indicators were for a good second half. As a result, OM Group stock continued to trade above $50 per share.

On 9/19/02, OM Group warned the 3rdQ 02 results would be slightly lower than prior statements, but that results would still be significantly higher than in the prior year. Then, on 10/29/02, OM Group announced a huge loss, an inventory write-down and a future restructuring. OM Group stock dropped to as low as $8.60 per share on volume of $22 million shares. Later, on 10/31/02, it was disclosed that OM Group's Chief Executive Officer had sold all his holdings to cover a margin call on some 710,000 shares on OM Group stock which he had used as collateral for a huge loan. On this news, the stock dropped even further to as low as $6.12 per share.

Plaintiff seeks to recover damages on behalf of all purchasers of OM Group publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices in New York, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss Web site (http://www.milberg.com) has more information about the firm.