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> Headline: Omega Research (NASDAQ:OMGA) named in lawsuit
> BALA CYNWYD, Pa.--(BUSINESS WIRE)--Jan. 28, 1998--Notice is
> hereby given that on Jan. 28, 1998, a class action lawsuit was filed
> in the United States District Court, Southern District of Florida on
> behalf of all persons who purchased or otherwise acquired the common
> stock of Omega Research Inc. ("Omega" or the "Company"), in the
> Company's initial public offering on Oct. 4, 1997 (the "Offering")
> or at any time between the Offering and Jan. 6, 1998.
<snippage>
> The complaint alleges that the Prospectus for the Offering
> included material misrepresentations and omissions concerning the
> Company's true financial condition at the time of the Offering in
> light of the Company's ongoing trend of declining sales of its
> TradeStation software and that the Prospectus did not properly
> disclose the true beneficiaries of a $15 million dividend paid from
> the proceeds of the Offering.
Sounds to me like the underwriters who took Omega public ought to be the ones
who get hammered here, unless Omega and the Cruz bros deliberately lied to the
underwriters. I know that the officers at Omega are ultimately responsible to
make sure that the represntations in the prospectus are true, but these guys at
the underwriters take companies public every day and ought to know how to do it
right. I'm not defending Omega, but I think we ought to look at the
underwriters first.
"It's hard to make predictions, especially about the future."-Yogi Berra
Shawn Devlin
shawnd@xxxxxxxxxxxxx
Pigs get fat, Hogs get slaughtered!
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