Company Press Release
January 25, 2000
NEW YORK, NY -- Wolf Haldenstein Adler Freeman & Herz LLP announces that it is filing a securities class action
lawsuit in the United States District Court for the Middle District of Florida on behalf of investors who bought
Sunterra Corp. (NYSE:OWN - news; ``Sunterra'' or the ``Company'') stock between October 6, 1998 and January 19,
2000 (the ``Class Period'').
The lawsuit charges Sunterra and certain officers of the Company, with violations of the securities laws and regulations
of the United States. The lawsuit alleges that defendants issued a series of false and misleading statements during
the Class Period concerning the Company's receivables portfolio and internal controls. The complaint alleges that
defendants' false and misleading statements artificially inflated the price of the Company's stock during the Class
Period.
On January 20, 2000, just prior to the opening of the market, defendants stunned the investment community by announcing
that Sunterra would have to take a special charge of between $35 and $48 million related to delinquent receivables
on its balance sheet. Upon the release of this announcement the Company's stock price sank to a close of $4.00
on January 20, 2000 from a close of $6.1875 on January 19, 2000.
Plaintiff seeks to recover damages on behalf of all class members and is represented by the law firm of Wolf Haldenstein
Adler Freeman & Herz LLP (www.whafh.com). The Wolf Haldenstein firm has a full service commercial practice
consisting of approximately 50 attorneys based in New York City and San Diego. The firm's litigation department
has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly
with respect to federal securities laws, class actions and shareholder litigation. The firm's qualifications have
repeatedly received very favorable judicial recognition. The firm has achieved recoveries of $2 billion on behalf
of investors and shareholders.
If you purchased Sunterra stock during the Class Period, you have until March 21, 2000 to participate in the case
and ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff,
you must meet certain legal requirements. If you wish to discuss this action or have any questions, please contact
Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at
(800) 575- 0735 (Michael Miske, George Peters, Gregory Nespole, Esq., Fred Taylor Isquith, Esq. or Shane T. Rowley,
Esq.), via e-mail at classmember@whafh.com or visit our website at www.whafh.com
All e-mail correspondence should make reference to Sunterra.
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Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Michael Miske/George Peters/Gregory Nespole, Esq.
Fred Taylor Isquith, Esq./Shane T. Rowley, Esq.
(800) 575-0735
www.whafh.com
classmember@whafh.com