SAN DIEGO- LAWFUEL – Press Release Service -June 20, 2006–On June 1, 2006, Johnson Law Firm APC commenced a securities fraud class action lawsuit in the United States District Court for the Western District of Pennsylvania on behalf of those persons and entities who owned the securities of Erie Family Life Insurance Company (“EFL”) (Nasdaq:ERIE) between March 21, 2004 and March 24, 2006.
This lawsuit alleges an effort by Erie Indemnity Company (“Erie Indemnity”), Erie Insurance Exchange (“Erie Exchange”) and EFL’s board of directors to “freeze out” EFL’s minority shareholders at an unreasonably low price. As described in the Complaint, defendants artificially depressed the price of EFL shares to as low as $26.50 per share even though they had traded at above $32 per share for nearly two years. Defendants then announced that a “third-party” purchaser would pay the minority shareholders $32 for their shares. The purchaser was not a “third party” at all, but rather a shell entity owned and controlled by Erie Indemnity and Erie Exchange.
The Complaint alleges that EFL and its directors, along with Erie Indemnity and Erie Exchange, violated Section 14(e) of the Securities and Exchange Act of 1934 by issuing false and misleading tender offer documents in which they misrepresented or failed to disclose the true facts regarding the proposed tender offer.
If you purchased EFL securities between March 21, 2004 and March 24, 2006, you may, no later than August 21, 2006, move the Court to appoint you as lead plaintiff to act on behalf of the other class members in directing the litigation. Your ability to share in any recovery is not affected by whether you serve as lead plaintiff. You may retain Johnson Law Firm APC or other counsel of your choice to represent you.
Additionally, if you have any information regarding the allegations in the Complaint please contact Johnson Law Firm APC. Your identity will remain strictly confidential.
Johnson Law Firm APC is committed to providing the highest quality of legal services with the efficiency and personal touch that only a small firm can offer. It has extensive experience handling cases involving securities fraud in both state and federal court. Please visit www.johnsonlawfirmapc.com for more information about the firm.
If you would like to discuss this case with us, or have any questions about this notice or your rights, please contact:
Frank J. Johnson, Esq. or Brett M. Weaver, Esq.
402 West Broadway, 27th Floor
San Diego, California 92101